New Zealand data show that the inflation-output relationship is asymmetric. This asymmetry implies that positive demand shocks tend to increase inflation by more than negative demand shocks of similar magnitudes reduce it. An important implication of this asymmetry is that a monetary authority...

This paper investigates differences in time series behaviour of real output and the price levels in seven countries (the United States, the United Kingdom, Germany, Japan, Canada, Australia, and New Zealand) under alternative exchange rate systems. Quarterly data spanning the Bretton-Woods and...

The authors use monthly data from May 1973 to December 1991 to estimate a textbook version of the monetary model of the nominal exchange rate determination. They use a modified version of the Phillips and Loretan (1991) Two-Sided Dynamic Least Squares. This method accounts for the serial...

This paper provides evidence that the relationship between inflation and money growth has changed as the inflation-targeting regime has progressed. During the disinflation period (mid 1980s to mid or late 1991) the correlation between inflation and money aggregates was fairly consistent with the...

Some observers have worried that under or over-estimating the output gap may unnecessarily induce tightening or loosening of monetary conditions, causing real fluctuations. To investigate the relationship between the output gap and inflation, we examine models of inflation that do and do not use...

Effectively, the government of Iraq, not the Iraqi people, owns the oil wealth; the oil industry is a government monopoly. We make the case against such monopoly and for a competitive oil industry. We estimate the share of oil in real output to be relatively large, and show that most...

Endogenous growth models based on micro-foundations predict that total factor productivity (TFP) growth is positively associated with effective research effort. We use macroeconomic-pooled time series-cross sectional data for the G7 countries from 2000 to 2017 to provide a robust estimate of...

Evidence-based policy re global warming is best relying on a relevant sample of data. Showing close correlation between CO2 and temperature over hundreds of thousands of years is irrelevant today. We choose a sample of annual data from 1959 to-date to provide some statistically robust stylized...

We show that the share of oil in real output is relatively large, nearly 60 percent. Effectively, the government of Iraq– not the people – owns and manages the oil wealth. This dependence on oil as the main income is also consistent with the rentier economy and the Resource Curse phenomenon....