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Wage Rigidity and Capital Mobility in an Optimizing Model of a Small Open Economy

de Klundert, Theo C N J van; van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 1987

-state effects of afiscal contraction, monetary disinflation, a worsening of thesupply side, an increase in the world interest rate …

Persistent link: https://www.econbiz.de/10005792502

Monetary Sovereignty, Exchange Rates, and Capital Controls: The Trilemma in the Interwar Period

Obstfeld, Maurice; Shambaugh, Jay C; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2004

disorder in the world economy. The interwar disorder is often linked to policies inconsistent with the constraint of the open …-economy trilemma - the inability of policy-makers simultaneously to pursue a fixed exchange rate, open capital markets, and autonomous … yield. This historical analytic narrative is compelling - with significant ramifications for today’s world, if true - but …

Persistent link: https://www.econbiz.de/10005067639

The Trilemma in History: Trade-offs Among Exchange Rates, Monetary Policies and Capital Mobility

Obstfeld, Maurice; Shambaugh, Jay C; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2004

The exchange-rate regime is often seen as constrained by the monetary policy trilemma, which imposes a stark trade …-off among exchange stability, monetary independence, and capital market openness. Yet the trilemma has not gone without … the trilemma are largely borne out by history. …

Persistent link: https://www.econbiz.de/10005123496

What Segments Equity Markets?

Bekaert, Geert; Harvey, Campbell; Lundblad, Christian T; … - C.E.P.R. Discussion Papers - 2010

We propose a new, valuation-based measure of world equity market segmentation. While we observe decreased levels of …

Persistent link: https://www.econbiz.de/10008784702

Optimal Exchange Rate Policy in a Growing Semi-Open Economy

Bacchetta, Philippe; Benhima, Kenza; Kalantzis, Yannick - C.E.P.R. Discussion Papers - 2013

In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy where the private sector has no access to international capital markets but the central bank has full access. Moreover, we assume limited financial development generating a large...

Persistent link: https://www.econbiz.de/10011083998

Understanding the Gains from Wage Flexibility: The Exchange Rate Connection

Galí, Jordi; Monacelli, Tommaso - C.E.P.R. Discussion Papers - 2014

We study the gains from increased wage flexibility and their dependence on exchange rate policy, using a small open economy model with staggered price and wage setting. Two results stand out: (i) the impact of wage adjustments on employment is smaller the more the central bank seeks to stabilize...

Persistent link: https://www.econbiz.de/10011083937

Has the Euro changed the Business Cycle?

Enders, Zeno; Jung, Philip; Müller, Gernot - C.E.P.R. Discussion Papers - 2012

In contrast to the notion that the exchange-rate regime is non-neutral, there is little evidence that EMU has systematically changed the European business cycle. In fact, we find the volatility of macroeconomic variables largely unchanged before and after the introduction of the euro. Exceptions...

Persistent link: https://www.econbiz.de/10011084347

Managed Floating: Understanding the New International Monetary Order

Bofinger, Peter; Wollmershaeuser, Timo - C.E.P.R. Discussion Papers - 2001

Although there seems to be a broad consensus among economists that purely floating or completely fixed exchange rates (the so-called corner solutions) are the only viable alternatives of exchange rate management, many countries do not behave according to this paradigm and adopt a strategy within...

Persistent link: https://www.econbiz.de/10005114175

Capital Mobility and the Output-Inflation Tradeoff

Loungani, Prakash; Razin, Assaf; Yuen, Chi-Wa - C.E.P.R. Discussion Papers - 1997

A common feature for developing countries that have experienced a sharp drop in inflation without large output losses is the extensive use of capital controls. This study shows that capital controls significantly improve the sacrifice ratio. This element contributes to the explanation of small...

Persistent link: https://www.econbiz.de/10005123647

Monetary policy responses to oil price fluctuations

Bodenstein, Martin; Guerrieri, Luca; Kilian, Lutz - C.E.P.R. Discussion Papers - 2012

reexamine the welfare gains from global monetary policy coordination in a world with trade in oil. …

Persistent link: https://www.econbiz.de/10011083477