This paper analyses cross-border spillovers of monetary policy by examining two countries that were in the eye of the storm during the euro area sovereign debt crisis, namely Ireland and Portugal. The research provides insight as to how banking and sovereign stress affect the inward transmission...

ASEAN Economic Community (AEC) is the vision of 10 nations in South East Asia to form a single common market and production based that will foster growth in the region. One of the pillars of AEC is financial integration which goaled to allow a seemingly interconnected capital market in South...

Standard practice is to use either absolute (first differences) or relative differences for interest rate modelling in a VaR and Stressed VaR context. The key question this paper addresses is how does the variability of rates change with the level of interest rates? This can help choose the...

I investigate whether countries that use unconventional monetary policy (UMP) experience export booms. I use a popular gravity model of trade which requires neither the exogeneity of UMP, nor instrumental variables for UMP. In practice, countries that engage in UMP experience a drop in exports...

This paper evaluates the effects of forward guidance and large-scale asset purchases (LSAP) when the nominal interest rate reaches the zero lower bound. I investigate the effects of the two policies in a dynamic new Keynesian model with financial frictions adapted from Gertler & Karadi (2011,...

This study is intended to demonstrate how Schoenmaker's financial trilemma and the Mundell–Fleming monetary trilemma took hold in Hungarian economic history between 1867 and 1938 – an era divided into five distinct periods –; in other words, which factors enjoyed priority over others in...

How far should capital requirements be raised in order to ensure a strong and resilient banking system without imposing undue costs on the real economy? Capital requirement increases make banks safer and are beneficial in the long run but carry transition costs because their imposition reduces...

Alan Greenspan's approach to dealing with the problem of uncertainty, as opposed to risk, appears to be extremely close to the approach advocated by J.M. Keynes himself in both the A Treatise on Probability (1921) and General Theory (1936). Greenspan provides an improved, general definition of...

This paper highlights some of the theoretical and practical implications for monetary policy and exchange rates that derive specifically from the presence of a global general equilibrium factor embedded in neutral real policy rates in open economies. Using a standard two country DSGE model, we...

The development of blockchain and cryptocurrency may alleviate the economic strain associated with recession. Economic recessions tend to be aggregate demand driven, meaning that they are caused by fluctuations in the supply of or demand for money. Holding monetary policy as solution assumes...