Both price level targeting and speed limit policies have been suggested as alternatives to inflation targeting that may confer benefits when a central bank operates under discretion, even if society's loss function is specified in terms of inflation (instead of price level) volatility. Here we...

Trade within currency unions has been shown to be much larger than outside of currency unions, even after factoring in many relevant variables. The existing empirical evidence is based on reduced form models of trade, and therefore indicates that there exists a high correlation between currency...

Standard measures of business cycle comovement, based on correlation coefficients, are very sensitive to the phase of the business cycle, as well as to regional crises. Adjusting for these factors overturns the empirical result that Asia-Pacific economies are becoming decoupled from the United...

Price level targeting has been proposed as an alternative to inflation targeting that may confer benefits if a central bank sets policy under discretion, even if society's loss function is specified in terms of inflation (instead of price level) volatility. This paper demonstrates the...