Objectives and Methodology: This paper explores theoretically and empirically the view that, due to asymmetric central bank preferences, Taylor rules are often non-linear and that the nature of those asymmetries changes over different policy regimes. Our theoretical model uses a standard...

This paper compares the behavior of long-term interest rates and prices in Italy, the United Kingdom and the United States, and seeks to shed light into what has become known as the 'Gibson paradox.' The authors compare the various theoretical explanations for the observed positive correlation...

This paper considers the issue of whether a small developing economy such as Hong Kong faces a perfectly elastic demand for its exports of manufactured goods. We construct a simultaneous demand and supply system which is estimated using Full Information Maximum Likelihood methods, and which...

This paper considers the applicability of a « forward-looking intertemporal optimisation » model of the demand. for money to Italian data for M2 balances. The authors estimate the resulting model using both « errors-in-variables » and « two-stage » estimation methods, and assess the...