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Inflation Targets Versus International Monetary Integration - A Canadian Perspective

Laidler, David - CESifo - 2002

The debate about Canadian-U.S. monetary integration is surveyed. The choice is among overall monetary orders,rather than exchange rate regimes and questions of policy credibility and political accountability are crucial. Canada’s recent economic performance under inflation targets, and...

Persistent link: https://www.econbiz.de/10005406116

International Credit Flows and Pecuniary Externalities

Brunnermeier, Markus; Sannikov, Yuliy - CESifo - 2015

This paper develops a dynamic two-country neoclassical stochastic growth model with incomplete markets. Short-term credit flows can be excessive and reverse suddenly. The equilibrium outcome is constrained inefficient due to pecuniary externalities. First, an undercapitalized country borrows too...

Persistent link: https://www.econbiz.de/10011124895

Real and Nominal Wage Adjustment in Open Economies

Forslund, Anders; Gottfries, Nils; Westermark, Andreas - CESifo - 2006

How are wages set in an open economy? What role is played by demand pressure, international competition, and structural factors in the labour market? How important is nominal wage rigidity and exchange rate policy for the evolution of real wages and competitiveness? To answer these questions, we...

Persistent link: https://www.econbiz.de/10005094255

The Greek Debt Crisis: Likely Causes, Mechanics and Outcomes

Arghyrou, Michael G.; Tsoukalas, John D. - CESifo - 2010

We use insights from the literature on currency crises to offer an analytical treatment of the crisis in the market for Greek government bonds. We argue that the crisis itself and its escalating nature are very likely to be the result of: (a) steady deterioration of Greek macroeconomic...

Persistent link: https://www.econbiz.de/10008799726

Optimal Conservatism and Collective Monetary Policymaking under Uncertainty

Hefeker, Carsten; Zimmer, Blandine - CESifo - 2014

We study how the optimal degree of conservatism relates to decision-making procedures in a Monetary Policy Committee (MPC). In our framework, central bank conservatism is required to attenuate the volatility of monetary decisions generated by the presence of uncertainty about the committee...

Persistent link: https://www.econbiz.de/10010888452

Japanese Foreign Exchange Intervention and the Yen/Dollar Exchange Rate: A Simultaneous Equations Approach Using Realized Volatility

Hillebrand, Eric; Schnabl, Gunther; Ulu, Yasemin - CESifo - 2006

We use realized volatility to study the influence of central bank interventions on the yen/dollar exchange rate. Realized volatility is a technical innovation that allows specifying a system of equations for returns, realized volatility, and interventions without endogeneity bias. We find that...

Persistent link: https://www.econbiz.de/10005181300

Monetary Policies of Large Industrialised Countries, Emerging Market Credit Cycles and Feedback Effects

Hoffmann, Andreas; Schnabl, Gunther - CESifo - 2014

This paper explores the link between monetary policies of large industrial countries and international credit cycles. Based on an overinvestment framework, we show that in the prevailing asymmetric world monetary system, monetary policies of large centre countries can fuel credit booms in...

Persistent link: https://www.econbiz.de/10010756160

A Role Model for China? Exchange Rate Flexibility and Monetary Policy in Japan

Schnabl, Gunther; Danne, Christian - CESifo - 2007

Few papers have tried to project how Chinese monetary policy will behave under flexible exchange rates. As Japan provides an important role model for China, this paper studies the role of the yen/dollar exchange rate for Japanese monetary policy after the shift of Japan from a fixed to a...

Persistent link: https://www.econbiz.de/10005405989

Overvalued: Swedish Monetary Policy in the 1930s

Rathke, Alexander; Straumann, Tobias; Woitek, Ulrich - CESifo - 2011

This paper reconsiders the role of monetary policy in Sweden’s strong recovery from the Great Depression. The Riksbank in the 1930s is sometimes seen as an example of a central bank that was relatively innovative in terms of the conduct of monetary policy. To consider this analytically, we...

Persistent link: https://www.econbiz.de/10009391723

Zooming Out: The Trade Effect of the Euro in Historical Perspective

Berger, Helge; Nitsch, Volker - CESifo - 2005

currencies and adopted a new common currency, the euro. Several recent papers argue that the introduction of the euro has led (by … put the trade effect of the euro in historical perspective. We argue that the creation of the EMU was a continuation (or … integration, the euro’s impact on trade disappears. Moreover, a significant part of the trend in European trade integration is …

Persistent link: https://www.econbiz.de/10005405814