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Inflation targeting rules and welfare in an asymmetric currency area

Lombardo, Giovanni - In: Journal of international economics 68 (2006) 2, pp. 424-442

Persistent link: https://www.econbiz.de/10003300546

Inflation Targeting Rules and Welfare in an Asymmetric Currency Area

Lombardo, Giovanni - 2016

This paper studies the effect on monetary policy of a non-homogeneous degree of competition across the (two) members of … results of Benigno (2003) in two ways. First, we show that, if the degree of competition differs across countries, the optimal …. We show that this can alter Benigno's results even under asymmetric degree of competition. Our study suggests that the …

Persistent link: https://www.econbiz.de/10012991378

Inflation Targeting Rules and Welfare in an Asymmetric Currency Area

Lombardo, Giovanni - 2007

This paper studies the effect on monetary policy of differing degrees of competition and differing degrees of nominal … International Economics 63, 293-320] by showing that, if the degree of competition differs between countries, the optimal rule could …

Persistent link: https://www.econbiz.de/10012776612

Optimal inflation, average markups and asymmetric sticky prices

Paczos, Wojtek - 2016

Persistent link: https://www.econbiz.de/10011452696

The inherent benefit of monetary unions

Groll, Dominik; Monacelli, Tommaso - 2016

The desirability of flexible exchange rates is a central tenet in international macroeconomics. We show that, with forward-looking staggered pricing, this result crucially depends on the monetary authority's ability to commit. Under full commitment, flexible exchange rates generally dominate a...

Persistent link: https://www.econbiz.de/10011525534

Nominal Rigidities and the Optimal Rate of Inflation

Andersen, Torben M. - 2001

Inflation may enhance the efficiency of the price system in the presence of nominal rigidities. For the price system to function efficiently there is a need for nominal prices to adjust both to real and nominal shocks for relative prices to disseminate the appropriate signals. Since the...

Persistent link: https://www.econbiz.de/10014137096

Nominal rigidities and the optimal rate of inflation

Andersen, Torben M. - 1999

This paper analyses two reasons why inflation may interfere with price adjustment so as to create inefficiencies in resource allocation at low rates of inflation. The first argument is that the higher the rate of inflation the lower the likelihood that downward nominal rigidities are binding...

Persistent link: https://www.econbiz.de/10009768268

Welfare consequences of inconsistent monetary policy implementation in Vietnam

Le Thanh Ha; To Trung Thanh; Doan Ngoc Thang - In: Economic research 33 (2020) 1,1, pp. 555-578

Persistent link: https://www.econbiz.de/10013173534

Imperfect competition, monetary policy and welfare in a currency area

Lombardo, Giovanni - 2002

This paper studies the implication, in terms of welfare and monetary policy, of unequal degrees of competition across … members of a currency area. We look at two ways in which the degree of competition in the market for goods can affect welfare … in a currency area. One is through different average degrees of competition in the monetary union; the other is through …

Persistent link: https://www.econbiz.de/10001693438

Welfare Reversals in a Monetary Union

Auray, Stéphane - 2014

We show that welfare can be lower under complete financial markets than under autarky in a monetary union with home bias, sticky prices and asymmetric shocks. Such a monetary union is a second-best environment in which the structure of financial markets affects risk-sharing but also shapes the...

Persistent link: https://www.econbiz.de/10013061243