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Are bygones not bygones? Modeling price level targeting with an escape clause and lessons from the gold standard

Masson, Paul R.; Shukayev, Malik D. - 2008

Like the gold standard, price level targeting (PT) involves not letting past deviations of inflation be bygones; both regimes return the price level (or price of gold) to its target. The experience of suspension of the gold standard in World War I, resumption in the 1920s (for some countries at...

Persistent link: https://www.econbiz.de/10010280015

Trend inflation, wage and price rigidities, and welfare

Amano, Robert; Moran, Kevin; Murchison, Stephen; … - 2007

This paper studies the steady-state costs of inflation in a general-equilibrium model with real per capita output growth and staggered nominal price and wage contracts. Our analysis shows that trend inflation has important effects on the economy when combined with nominal contracts and real...

Persistent link: https://www.econbiz.de/10010280042

Expenditure-switching effect and the choice of exchange rate regime

Dong, Wei - 2007

The author investigates the quantitative importance of the expenditure-switching effect by developing and estimating a structural sticky-price model nesting both producer currency pricing (PCP) and local currency pricing (LCP) settings. The author aims to provide empirical evidence of the...

Persistent link: https://www.econbiz.de/10010280045

Inflation and unemployment in competitive search equilibrium

Dong, Mei - 2010

Using a monetary search model, Rocheteau, Rupert and Wright (2007) show that the relationship between inflation and unemployment can be positive or negative depending on the primitives of the model. The key features are indivisible labor, nonseparable preferences and bargaining. Their results...

Persistent link: https://www.econbiz.de/10010280046

Canada's pioneering experience with a flexible exchange rate in the 1950s: (hard) lessons learned for monetary policy in a small open economy

Bordo, Michael; Dib, Ali; Schembri, Lawrence - 2007

This paper revisits Canada's pioneering experience with floating exchange rate over the period 19501962. It examines whether the floating rate was the best option for Canada in the 1950s by developing and estimating a New Keynesian small open economy model of the Canadian economy. The model is...

Persistent link: https://www.econbiz.de/10010280054

Adopting price-level targeting under imperfect credibility: An update

Kryvtsov, Oleksiy; Shukayev, Malik; Ueberfeldt, Alexander - 2008

This paper measures the welfare gains of switching from inflation-targeting to price-level targeting under imperfect credibility. Vestin (2006) shows that when the monetary authority cannot commit to future policy, price-level targeting yields higher welfare than inflation targeting. We revisit...

Persistent link: https://www.econbiz.de/10010280059

Entrepreneurship and human development: A capability approach

Gries, Thomas; Naudé, Wim - 2010

We provide a formal model of entrepreneurship in human development. The framework is provided by the capabilities approach (CA). Hence we extend not only the conceptualisation of entrepreneurship in development, but the reach of the CA into entrepreneurship. From a CA view, entrepreneurship is...

Persistent link: https://www.econbiz.de/10010280225

Rethinking trade and trade policy: Gomory, Baumol, and Samuelson on comparative advantage

Palley, Thomas I. - 2006

The theory of comparative advantage says that there are gains from trade for the global economy as a whole. In this … advantage is driven by technology, which can be influenced by human action and policy. These associations have huge implications … trade theory to question the distribution of trade gains across countries over time and to challenge commonly held beliefs …

Persistent link: https://www.econbiz.de/10010280335

After the bust: The outlook for macroeconomics and macroeconomic policy

Palley, Thomas I. - 2009

theory remains unreformed, says Palley, and he warns of a return to failed policies if a deep crisis is averted. Since Post …

Persistent link: https://www.econbiz.de/10010280363

Lumpy countries, urbanization, and trade

Brakman, Steven; van Marrewijk, Charles - 2011

Lumpiness of production factors within a country might overturn the predictions for the structure of trade by the factor-abundance (HO) model. Trade patterns, as predicted by this model, can both be magnified or reversed by uneven concentration of production factors within a country. Cities are...

Persistent link: https://www.econbiz.de/10010280631