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Flood, Robert P; Rose, Andrew K - C.E.P.R. Discussion Papers - 1994

Regressions of ex-post changes in floating exchange rates on appropriate interest differentials typically imply that … the high interest rate currency tends to appreciate - the `forward discount puzzle'. Using data from the European Monetary …, deviations from uncovered interest parity appear to vary in a way that is dependent upon the exchange rate regime. By using the …

Persistent link: https://www.econbiz.de/10005067597

Staying Afloat When the Wind Shifts: External Factors and Emerging-Market Banking Crises

Eichengreen, Barry; Rose, Andrew K - C.E.P.R. Discussion Papers - 1998

. In particular, high Northern interest rates are strongly associated with the onset of banking crises in developing …

Persistent link: https://www.econbiz.de/10005792121

Monetary Policy In The Open Economy Revisited: Price Setting Rules And Exchange Rate Flexibility

Devereux, Michael B; Engel, Charles M - C.E.P.R. Discussion Papers - 2000

This paper develops a welfare-based model of monetary policy in an open economy. We focus on the extent to which monetary policy should be employed in maintaining the exchange rate. The traditional approach maintains that exchange rate flexibility is desirable in the presence of real...

Persistent link: https://www.econbiz.de/10005504222

Monetary Policy Interactions under Managed Exchange Rates

Giavazzi, Francesco; Giovannini, Alberto - C.E.P.R. Discussion Papers - 1986

This paper studies monetary policy games in a two-period Mundell-Fleming model, under a regime of managed exchange rates. A regime of managed exchange rates is defined as one where exchange rates are pegged but bilateral parities can be changed from time to time. The paper argues that such a...

Persistent link: https://www.econbiz.de/10005504262

Monetary and Fiscal Policy in an Optimizing Model with Capital Accumulation and Finite Lives

Marini, Giancarlo; van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 1987

in the real interest rate and increases in the capital stock, seignorage revenues, human wealth and total consumption …. A tax-financed fiscal expansion increases the rate of interest, reduces the capital stock, real money balances and human … affect the real interest rate, capital, total wealth and consumption when households are immortal. …

Persistent link: https://www.econbiz.de/10005504290

Back to Keynes?

van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 2005

in explaining the business cycle, and no effect of the nominal as well as the real interest rate on aggregate demand …

Persistent link: https://www.econbiz.de/10005504355

Financial Crises, Monetary Policy and Financial Fragility; A Second-Generation Model of Currency Crises

Eijffinger, Sylvester C W; Goderis, Benedikt - C.E.P.R. Discussion Papers - 2002

In this Paper we present a model that combines the second-generation trade-off between costs of maintenance and abandonment with possible balance-sheet problems in the corporate sector. We show how debt levels can move a small economy from a fixed exchange rate to a floating exchange rate...

Persistent link: https://www.econbiz.de/10005504385

Costs and Benefits of Monetary Union

Eichengreen, Barry - C.E.P.R. Discussion Papers - 1990

reduction in exchange risk, equalization of interest rates, decline in relative price variability and general increase in …

Persistent link: https://www.econbiz.de/10005504417

Monetary Interdependence under Alternative Exchange-Rate Regimes: A European Perspective

van der Ploeg, Frederick - C.E.P.R. Discussion Papers - 1989

This paper analyses and compares the effects of common demand and supply shocks on the setting of optimal monetary policies under a clean float, a managed exchange rate system (such as the EMS) and a monetary union, when welfare depends on unemployment and the cost of living. The results suggest...

Persistent link: https://www.econbiz.de/10005504499

Financial Asset Prices and Monetary Policy: Theory and Evidence

Smets, Frank - C.E.P.R. Discussion Papers - 1997

-term interest rate and an asset price such as the exchange rate – a Monetary Conditions Index (MCI) – are discussed. The second …

Persistent link: https://www.econbiz.de/10005504548