This paper explores the effects of nominal volatility and limited participation in asset markets on the risk sharing possibilities available to agents. When the set of financial assets is a decision of agents and is constrained by the resources available for investment, limited participation and...

Public pension funds are, by far, the world's preeminent asset owners, with more than $ 25 trillions in combined assets. The largest pension funds are found in the United States, Canada, Australia, Japan, the Netherlands and the UK ("pension superpowers"). How they are managed, their funding...

This paper studies the changing characteristics of post-war international comovement under fixed and flexible exchange regimes. I find that business cycle comovement among all the G7 economies was highest in the universally flexible exchange rate era following the collapse of Bretton Woods (BW)...

We confront the notion that flexible rates insulate a country from external disturbances with new evidence on spillovers from euro-area shocks to neighboring countries. We find that in response to euro-area shocks, spillovers are not smaller, and currency movements not significantly larger, in...

This paper studies the role of buyer market power in determining the response of international prices to exchange rate changes (i.e., exchange rate pass-through). Using a novel dataset of the universe of Colombian export transactions that links Colombian exporters (sellers) to their foreign...

Inflation has risen sharply in many countries since the COVID-19 outbreak. Economists have debated the underlying causes. In this paper, we examine the drivers of the global import price inflation, which peaked at approximately 11 percent a year. We find that a common global component closely...

This paper investigates the impacts of inflation uncertainty on inflation and economic activities. We take three steps. We first put together various measures of inflation uncertainty—including survey- and model-based - and extract a common inflation uncertainty for the group of seven advanced...

The paper addresses the issue of the co-movements of national inflation dynamics with a common factor of a global dynamic. Based on the previous work of Ciccarelli and Mojon (2005) on global inflation the authors look at the more recent development in particular after the outbreak of the global...

Cyclical fluctuations in nominal variables--aggregate price levels and nominal interest rates--are documented to be substantially more synchronized across countries than cyclical fluctuations in real output. A transparent mechanism that can account for this striking feature of the nominal...

We analyze the importance of global shocks for the global economy and national policy makers. More specifically, we investigate whether monetary policy has become less effective in the wake of financial globalization. We also examine whether there is increasing uncertainty for central banks due...