Bond prices plummeted in early 1994. These losses occurred while the Fed was raising interest rates. John Y. Campbell argues that the Fed could have triggered the losses either by communicating information about incipient inflation or by increasing uncertainty about monetary policy and thus...

Financial economists have long debated whether monetary policy is neutral. This paper addresses this question by examining how stock return data respond to monetary policy shocks. Monetary policy is measured by innovations in the federal funds rate and nonborrowed reserves, by narrative...

This paper considers how exchange rates affect East Asian trade. The evidence indicates that exports produced within regional production networks depend on exchange rates throughout the region while labor-intensive exports depend on exchange rates in the exporting country. These results make...

This paper investigates import demand in East Asia. Estimating exchange rate elasticities for countries in the region is difficult because many imports are used to produce goods for re-export. An exchange rate appreciation that reduces East Asian exports will also reduce the demand for imported...

There has been an explosion in the amount of parts and components traded within East Asian production networks. The People’s Republic of China (PRC) has emerged as the final assembly point for the goods produced. These goods then flow primarily outside of the region. When the global financial...