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Giovannini, Alberto; Turtelboom, Bart - C.E.P.R. Discussion Papers - 1993

This paper reviews the extensive theoretical and empirical literature on currency substitution. After discussing the ambiguity surrounding the definition of currency substitution, the paper illustrates the causes of substitutability of different currencies using a cash-in-advance model and a...

Persistent link: https://www.econbiz.de/10005124337

Should We be Afraid of Friedman's Rule?

Uhlig, Harald - C.E.P.R. Discussion Papers - 2000

Should one think of zero nominal interest rates as an undesirable liquidity trap or as the desirable Friedman rule? I use three different frameworks to discuss this issue. First, I restate Cole and Kocherlakota's (1998) analysis of Friedman's rule: short run increases in the money stock -...

Persistent link: https://www.econbiz.de/10005788876

Measuring Income Elasticity for Swiss Money Demand: What Do the Cantons Say About Financial Innovation?

Fischer, Andreas M - C.E.P.R. Discussion Papers - 2005

Recent time-series evidence has reconfirmed the forecasting ability of Swiss broad money. The same money demand studies and others, however, find that the income elasticity is greater than one. Such parameter estimates are difficult to reconcile with transactions demand theory. This study...

Persistent link: https://www.econbiz.de/10005661942

Time-Varying Business Volatility, Price Setting, and the Real Effects of Monetary Policy

Bachmann, Rüdiger; Born, Benjamin; Elstner, Steffen; … - C.E.P.R. Discussion Papers - 2013

Does time-varying business volatility affect the price setting of firms and thus the transmission of monetary policy into the real economy? To address this question, we estimate from the firm-level micro data of the German IFO Business Climate Survey the impact of idiosyncratic volatility on the...

Persistent link: https://www.econbiz.de/10011083687

Europe’s Great Depression: Coordination Failure after the First World War

Wolf, Nikolaus - C.E.P.R. Discussion Papers - 2010

of the great depression in Europe and the delay of recovery as a failure to coordinate economic policies. Europe could …

Persistent link: https://www.econbiz.de/10008466327

Helicopter Money: Irredeemable Fiat Money and the Liquidity Trap

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2004

The Paper provides a formalization of the monetary economics folk proposition that government fiat money is an asset of the holder (the private sector) but not a liability of the issuer (the state). Money is 'net wealth' in the limited sense that, after consolidation of the intertemporal budget...

Persistent link: https://www.econbiz.de/10005504641

Inflation, Nominal Interest Rates and the Variability of Output

Chadha, Bankim; Tsiddon, Daniel - C.E.P.R. Discussion Papers - 1994

This paper examines the distribution of output around capacity when money demand is a non-linear function of the nominal interest rate such that nominal interest rates cannot become negative. When fluctuations in output result primarily from disturbances to the money market, the variance of...

Persistent link: https://www.econbiz.de/10005504650

Money in Monetary Policy Design under Uncertainty: The Two-Pillar Phillips Curve versus ECB-Style Cross-Checking

Beck, Günter; Wieland, Volker - C.E.P.R. Discussion Papers - 2007

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. In this paper, we explore possible justifications. The case against including money in the central … deviations of long-run money growth helps the central bank to overcome this bias. Our argument in favour of ECB-style cross …

Persistent link: https://www.econbiz.de/10005792117

Money in Monetary Policy Design: A Formal Characterization of ECB-Style Cross-Checking

Beck, Günter; Wieland, Volker - C.E.P.R. Discussion Papers - 2007

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard …

Persistent link: https://www.econbiz.de/10005497931

Did Inflation Really Soar After the Euro Cash Changeover? Indirect Evidence from ATM Withdrawals

Angelini, Paolo; Lippi, Francesco - C.E.P.R. Discussion Papers - 2005

The introduction of the euro notes and coins during the first months of 2002 was followed by a lively debate on the alleged inflationary effects of the new currency. In Italy, as in the rest of the euro area, survey-based measures signaled a much sharper rise in inflation than measured by the...

Persistent link: https://www.econbiz.de/10005504448