This paper explores the ability of the New-Keynesian (NK) model to explain the recent periods of quiet and stable inflation at near-zero nominal interest rates. We show how (conventional and unconventional) monetary policy shocks enlarge the ability to explain the facts, such that the theory...

This paper investigates the ability of monetary policy rules to coordinate private agents' expectations when the enforcement of rules is limited. We show that limited enforcement precludes diverging inflation paths ensuring that nominal variables remain bounded in equilibrium. When applied to...

This paper aims to survey the existing literature on the relationship between banking and space. Many studies have documented disparities in the regional responses to monetary policy shocks. Given the fact that monetary policy affects some regions of the country more than others, a review of the...

After the global financial crisis, some governments in the EU experienced serious debt financing problems, while others were less affected. This paper seeks to shed light on the divergent fiscal performance by assessing the fiscal conduct in the EU countries before and after the outbreak of the...

Monetary policy affects the degree of strategic complementarity in firms' pricing decisions if it responds to the aggregate price level. In normal times, when monopolistic competitive firms increase their prices, the central bank raises interest rates, which lowers consumption demand and creates...

Let () be a differentiable function on the real line , and let be a point not on the graph (). Define the illumination index of to be the number of distinct tangents to the graph of which pass thru . We prove that if ″ is continuous and nonnegative on , ″ ≥ 0 outside a closed interval of...

In this paper we consider the problem of best approximation in (), 1 ≤ ≤ ∞. If , 1 ≤ ∞, denotes the best -approximation of the element ∈ ℝ from a proper affine subspace of ℝ, ∉ , then , where is a best -approximation of from , the so-called natural best -approximation. Our aim...