This paper investigates the asymmetries between the United States and Europe in terms of differences in structural characteristics as these are captured by the elasticities of the underlying LM and AS curves. The AS elasticity is further decomposed into those factors that underlie Okun's Law and...

Central banks have an aversion to bailing out speculators when asset bubbles burst, but ultimately, as custodians of the financial system, they have to do exactly that. Their actions are justified by the goal of protecting the economy from the bursting of bubbles; while their intention may be...

All of the various schemes that have been put forward to resolve the current credit crisis follow either the "business as usual" or the "good bank" model. The "business as usual" model takes different forms--insurance or guarantee of the assets or liabilities of the financial institutions,...

This paper attempts to quantify the U.S. housing market slump and its likely impact on consumption. In doing so, it bypasses the traditional approach that suggests that there is no nationwide housing market but a compendium of segmented markets. The paper is not an exercise in forecasting but an...

The three puzzles these authors address suggest that managing the world economy may become more difficult in the coming year. Low bond yields, the good performance of euro stocks, and the broadening of retail investors into nontraditional assets have raised more questions than answers. These...

Henry, Samuel G. B. and Karakitsos, Elias A cut in indirect tax reduces market prices, and lowers inflation temporarily while increasing real disposable income and employment. A small analytical macroeconomic model is developed to analyze the transmission of indirect tax changes incorporating...

The paper analyses the current credit crisis and finds that NCM or Neo-Wicksellian models are inadequate to detect the roots of the crisis, let alone to deal from a policy perspective with the problems and the cures. It attempts to rectify some of these drawbacks of the NCM models and in the way...

The aim of this paper is to show that there are clear advantages in forecasting overall market trends and in policy analysis in treating the US housing market as homogeneous. This study differs from the traditional approach and other studies that attempt to deal with US house prices in a...