In a recent paper, T. M. Anderson analyzes a New Classical model in which demanders and suppliers are differentially informed. He claims that a particular feedback monetary policy, but not a private indexation rule, is able to perfectly stablize the economy. The authors show that Anderson's...

The authors uncover a significant negative correlation between various volatility measures and private investment in developing countries, even when adding the standard control variables. No such correlation is uncovered when the investment measure is the sum of private and public investment...

This paper constructs an intertemporal version of a monopolistic competitive framework where producers may diversify internationally. International diversification is shown to induce a positive correlation between the volatility of productivity shocks and investment. In the presence of a...