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International Policy Coordination and Simple Monetary Policy Rules

Berger, Wolfram - 2008

This paper studies the optimal design of monetary policy in an optimizing two-country sticky price model. We suppose that the production sequence of final consumption goods stretches across both countries and is associated with vertical trade. Prices of final consumption goods are sticky in the...

Persistent link: https://www.econbiz.de/10012773814

Global Liquidity Trap

Fujiwara, Ippei - 2017

that the optimal rate of inflation in one country is affected by whether or not the other country is in a liquidity trap …

Persistent link: https://www.econbiz.de/10012951361

Optimal Policy Rules at Home, Crisis and Quantitative Easing Abroad

McNelis, Paul D. - 2016

This paper examines the international transmission of financial shocks which originate in, and are partially offset by, quantitative easing in a large financially-stressed country. Using a two-country model, we evaluate the adjustment in the non-stressed home country, following recurring...

Persistent link: https://www.econbiz.de/10012980106

Financial Frictions and Optimal Monetary Policy in an Open Economy

Kolasa, Marcin - 2016

A growing number of papers have studied positive and normative implications of financial frictions in DSGE models. We contribute to this literature by studying the welfare-based monetary policy in a two-country model characterized by financial frictions, alongside a number of key features, like...

Persistent link: https://www.econbiz.de/10013008558

Global Liquidity Trap

Fujiwara, Ippei; Nakajima, Tomoyuki; Sudou, Nao; … - 2015

that the optimal rate of inflation in one country is affected by whether or not the other country is in a liquidity trap …

Persistent link: https://www.econbiz.de/10014157685

The Nonstationarity of Money and Prices in Interdependent Economies

Daniels, Joseph P.; VanHoose, David D. - 2001

In most nations, paths of monetary aggregates and prices consistently depart from stationary trends. This paper shows that this is a fundamental implication when monetary authorities of interdependent countries seek to smooth their home output and prices in the presence of incomplete world...

Persistent link: https://www.econbiz.de/10014068727

Exchange rate misalignment and external imbalances : what is the optimal monetary policy response?

Corsetti, Giancarlo; Dedola, Luca; Leduc, Sylvain - 2023

How should monetary policy respond to excessive capital inflows that appreciate the currency and widen the external deficit? Using the workhorse two-country open-macro model, we derive a quadratic approximation of the utility-based global loss function in incomplete market economies, and solve...

Persistent link: https://www.econbiz.de/10014362654

Oil Shocks and the Zero Bound on Nominal Interest Rates

Bodenstein, Martin; Guerrieri, Luca; Gust, Christopher - 2010

inflation and output in opposite directions, their effects on economic activity are cushioned when monetary policy is … constrained. The burst of inflation from an oil price increase lowers real interest rates at the ZLB and stimulates the interest … rise in inflation can cause a GDP expansion …

Persistent link: https://www.econbiz.de/10014189147

Unemployment and the demand for money

Huber, Samuel; Kim, Jaehong; Marchesiani, Alessandro - 2019

unemployment. Our model succeeds in replicating the empirical fact of a downward sloping Phillips curve for low inflation rates and … an upward sloping curve for high inflation rates. The reason is that low inflation rates make saving, as opposed to …, when inflation exceeds a certain threshold, money is too costly to hold, which results in a decrease in output and an …

Persistent link: https://www.econbiz.de/10012018950

Deleveraging, deflation and depreciation in the euro area

Kuvshinov, Dmitry; Müller, Gernot J.; Wolf, Martin - In: European economic review : EER 88 (2016), pp. 42-66

Persistent link: https://www.econbiz.de/10011770860