The performance of the U.S. economy between 1994 and 1998 was so good that some pundits began to call for the Federal Reserve to increase interest rates to depress economic activity and reduce asset prices. Using a combination of methods the author argues that slowing the economy to stabilize...

This paper examines the stock market exposures of French and German firms to the Korean won and the Japanese yen. If a European firm competes with an Asian firm, an appreciation of the euro relative to its competitors’ currency should lower its profitability and its stock price. If a European...

Macroeconomists traditionally focus on the aggregate consequences of disinflationary monetary policy, not its distributional effects. This paper considers these distributional effects. The evidence indicates that contractionary monetary policy harms interest rate-sensitive industries by...