The present paper incorporates a rolling regression approach to examine the sensitivity of output responses to monetary shocks. In doing so, the paper finds that the impact of monetary shocks is highly variable. Specifically, the output responses are estimated to be significant during the 1970s...

In target zone regimes, volatility trade-offs between the nominal exchange rate and the nominal interest rate differential depend on the underlying monetary model assumption. In an economy with price rigidities there exists no such trade-off when the exchange rate overshoots.

Previous studies are conflicting as to whether industry momentum can explain stock momentum. We revisit this issue using a large dataset covering the US and 37 international countries. The results indicate that industry momentum earns significant profits worldwide and the profits are larger in...