Housing prices have recently risen sharply in many countries, primarily linked to the global credit cycle. Although various factors play a role, the ability of developing countries to navigate this cycle and maintain autonomous monetary policies is crucial. This paper introduces a dynamic...

In this paper, we develop a small open economy model of secular stagnation that allows for both unemployment and underemployment. While unemployment results from the standard search and matching friction, underemployment in the form of an involuntary shortfall of working hours occurs under...

We compare the macroeconomic and housing-market effects of (1) reducing mortgage subsidies, (2) tightening borrower-based tools (debt-service-to-income [DSTI]/loan-to-value [LTV]) and (3) standard monetary and external shocks.We develop a small open-economy (SOE) New Keynesian dynamic stochastic...

The decline in international trade following the financial crisis suggests a shift in globalisation and a transformation of the in- ternational economic order. Protectionist trade policies have gained prominence as certain major economies increasingly im- plement tariffs to safeguard domestic...

This paper studies the design of monetary policy in small open economies with domestic and cross-border production networks and nominal rigidities. The monetary policy that closes the domestic output gap is nearly optimal and is implemented by stabilizing the aggregate inflation index that...

This policy note analyses the impacts of climate change on a small and open economy, emphasizing its effect on monetary policy. We use a New-Keynesian model to evaluate short- and long-term effects of transition climate change shocks - a permanent and anticipated shock to total factor...