E52

Monetary Policy

Firms' entry, monetary policy and the international business cycle

JEL codes: 
E32, E52
Version Date: 
Jul 2013
Author/s: 
Abstract: 

This paper proposes a two-country monetary model with firm entry as a means for alleviating the comovement puzzles in international business cycle models. It shows that business formation can generate fluctuations in output, employment, investment and trade flows close to those in the datawhile at the sametimeproviding positive international comovements.

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Firms' entry, monetary policy and the international business cycle

JEL codes: 
E30, E32, E52
Version Date: 
Jun 2013
Author/s: 
Abstract: 

This paper proposes a two-country monetary model with firm entry as a means for alleviating the comovement puzzles in international business cycle models. It shows that business formation can generate fluctuations in output, employment, investment and trade flows close to those in the datawhile at the sametimeproviding positive international comovements.

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BUSINESS CYCLE SYNCHRONIZATION IN THE EUROPEAN UNION: THE EFFECT OF THE COMMON CURRENCY

JEL codes: 
E32, E42, E52
Version Date: 
Apr 2013
Author/s: 
Abstract: 

In this paper, I analyse the synchronization of business cycles within the E.U., as this is an important ingredient for the implementation of a successful monetary policy. The business cycles of twelve E.U. countries and two sub-groups of countries are extracted for the period 1989Q1-2010Q2.

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Money in the production function: a new Keynesian DSGE perspective

JEL codes: 
E23, E31, E52
Version Date: 
Dec 2011
Author/s: 
Abstract: 

This paper proposes a New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model where real money balances enter the production function. By using a Bayesian analysis, our model shows that money is not an omitted input to the production process and rejects the decreasing returns to scale hypothesis.

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Does Easing Monetary Policy Increase Financial Instability?

JEL codes: 
E44, E52, E61
Version Date: 
Jan 2013
Abstract: 

We develop a model featuring both a macroeconomic and a financial stability objective that speaks to the interaction between monetary and macro-prudential policies.

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Financial Crises, Money and Inflation

JEL codes: 
E41, E52, E58
Version Date: 
May 2012
Author/s: 
Abstract: 

Financial crises have been followed by different inflation paths which are
related to monetary aggregate developments during those crises. This paper
characterizes the empirical relationship between money and inflation, accounting
for monetary policy and financial sector transmission as well as equilibrium

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Sticky Prices: A New Monetarist Approach

JEL codes: 
E31, E42, E52
Version Date: 
Jan 2012
Abstract: 

Why do some sellers set nominal prices that apparently do not respond to changes in
the aggregate price level? In many models, prices are sticky by assumption; here it
is a result. We use search theory, with two consequences: prices are set in dollars,
since money is the medium of exchange; and equilibrium implies a nondegenerate

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Estimating the Evolution of Money's Role in the U.S. Monetary Business Cycle

JEL codes: 
E31, E51, E52
Version Date: 
Mar 2012
Author/s: 
Abstract: 

Is money's role relevant to describing the post-WWII U.S. macroeconomic dynamics? Has this relevance changed over time? These questions are answered using both fixed-coefficient and rolling-window Bayesian estimations of a structural model of the business cycle with money.

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GDP Trend Deviations and the Yield Spread: the Case of Five E.U. Countries

JEL codes: 
C53, E43, E44, E52
Version Date: 
Aug 2010
Author/s: 
Abstract: 

Several studies have established the predictive power of the yield curve in terms of real economic activity. In this paper we use data for a variety of E.U. countries: both EMU (Germany, France, Italy) and non-EMU members (Sweden and the U.K.). The data used range from 1991:Q1 to 2009:Q1.

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The British opt-out from the European Monetary Union: empirical evidence from monetary policy rules

JEL codes: 
E32, E52
Version Date: 
Nov 2011
Author/s: 
Abstract: 

We analyze the current state of the monetary integration in Europe focusing on the UK position regarding the European Monetary
Union. The interest rates decisions of the European Central Bank
and the Bank of England are compared through different specifications of the Taylor Rule.

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