The Fed’s actions before and after the housing bubble burst: discretion and mandate of central banks in an environment of financial deregulation The Fed’s actions during the development and burst of the US real estate bubble highlight a Central Bank’s dilemma when facing a financial...

Empirical evidence documents a low pass-through of exchange rate changes to consumer prices in the short-run under a flexible exchange rate regime and the existence of relative price differentials across countries under a fixed exchange rate regime. Whether a two-country model is consistent with...