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In this paper we first present supporting evidence of the existence of heterogeneity in inflation dynamics across euro … area countries. Based on the estimation of New Phillips Curves for five major countries of the euro area, we find that … dominant forward looking component. In the second part of the paper we present an optimizing agent model for the euro area …
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We review recent changes in monetary policy that have led to development and testing of an overnight reverse repurchase agreement (ON RRP) facility, an innovative tool for implementing monetary policy during the normalization process. Making ON RRPs available to a broad set of investors,...
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Among the various explanations for the runup in oil and commodity prices of recent years, one story focuses on the role of monetary policy in the United States and in developing economies. In this view, developing countries that peg their currencies to the dollar were forced to ease their...
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In a two-country DSGE model, the effects of foreign demand shocks on the home country are greatly amplified if the home economy is constrained by the zero lower bound for policy interest rates. This result applies even to countries that are relatively closed to trade such as the United States....
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