Although central banks recently expanded their balance sheets by unconventional policy actions, little theory is available to explain how and when central banks’ balance sheets affect inflation and impose restrictions on monetary policy. A DSGE model predicts that central banks’ balance...

This paper quantitatively investigates how population aging trend affects fiscal space measured as unused revenue generating capacity by utilizing a standard neoclassical growth model. A calibration exercise for G-7 countries shows that France, Germany and Italy suffer greater revenue impact...

This paper evaluates the efficacy of the sterilized foreign exchange rate intervention while mitigating the pervasive endogenous bias in the intervention literature. In an attempt to solve the endogeneity problems, this paper utilizes customer trade data to identify the system of equations. By...