Long-term nominal interest rates in a number of inflation-targeting small open economies have tended to be highly correlated with those of the United States. This observation has recently lent support to the view that the long end of the yield curve is determined abroad. We set up and estimate a...

We use a structural vector autoregression (SVAR) to examine the effect of unanticipated changes in monetary policy on the expenditure and production components of GDP over the period from 1983 to 2007. We find that dwelling investment and machinery & equipment investment are the most...

Este artículo estudia cómo la innovación financiera en mercados de deuda soberana puede aumentar el nivel de inversión privada y el bienestar de un país. Propongo un modelo donde la deuda pública actúa como vehículo de provisión de liquidez para el sector privado doméstico y es...