Found 413 article(s) in category 'Monetary Policy'

The coming battles over monetary policy

The coming battles over monetary policy. Jeffry Frieden, January 2013, Paper. “As the world recovers from the Great Recession, get ready for some new fireworks, of a sort we haven’t seen for a while – over monetary policy. Just about every other weapon in the government economic-policy arsenal has been discarded, or denied; monetary policy is what remains. And that means that the political pressures that are typically exerted elsewhere are likely all to concentrate on the world’s monetary authorities. To see how and why this happened, we have to go back to the 1970s…” Link verified August 21, 2014

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Law and the Economy of Early America: Markets, Institutions of Exchange, and Labor

Law and the Economy of Early America: Markets, Institutions of Exchange, and Labor. Christine A. Desan, 2013, Book Chapter. “This chapter contains sections titled: Progress Narratives and Their Radical Critique in Law, Consumption and Commodity Studies, Institutions of Exchange, The Ambiguous Place of Labor…” May require purchase or user account. Link Verified October 11, 2014

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The Determinants of National Competitiveness

The Determinants of National Competitiveness. Michael Porter, Christian Ketels, July 1, 2012, Paper. “We define foundational competitiveness as the expected level of output per working-age individual that is supported by the overall quality of a country as a place to do business. The focus on output per potential worker, a broader measure of national productivity than output per current worker, reflects the dual role of workforce participation and output per worker in determining a nation’s standard of living. Our framework highlights three broad and interrelated drivers of foundational competitiveness: social infrastructure and political institutions, monetary and fiscal policy, and the microeconomic environment…Link

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Can Leading Indicators Assess Country Vulnerability? Evidence From The 2008–09 Global Financial Crisis

Can Leading Indicators Assess Country Vulnerability? Evidence From The 2008–09 Global Financial Crisis. Jeffrey Frankel, July 1, 2012, Paper. “We investigate whether leading indicators can help explain the cross-country incidence of the 2008–09 financial crisis. Rather than looking for indicators with specific relevance to the recent crisis, the selection of variables is driven by an extensive review of more than eighty papers from the previous literature on early warning indicators. Our motivation is to address suspicions that indicators found to be useful predictors in one round of crises are typically not useful to predict the next round…” Link

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Trade Credit and Taxes

Trade Credit and Taxes. Mihir Desai, C. Fritz Foley, May 2012, Paper. “This paper analyzes the extent to which tax differences affect the use of trade credit. U.S.-owned affiliates in low-tax countries use trade credit to lend, whereas those in high-tax countries use trade credit to borrow: 10% lower local tax rates are associated with net trade credit positions that are 1.4% higher as a fraction of sales. The use of trade credit to get capital out of low-tax, low-return environments is also illustrated by the temporary repatriation tax holiday in 2005, which was used most intensively by affiliates with positive net trade credit positions.Link

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Financial Stability and Responsive Monetary Policy: Resolving a Dynamic Incompatibility

Financial Stability and Responsive Monetary Policy: Resolving a Dynamic Incompatibility. Benjamin Friedman, February 1, 2012, Paper. “In the wake of the 2007-9 financial crisis a narrative has emerged, especially for the United States, that poses a new challenge to the joint conduct of monetary policy and financial regulation. This narrative places much of the blame for the crisis, and therefore the economic costs that the aftermath of the crisis inflicted (and continues to inflict) not just in the U.S. but elsewhere around the world as well, on the easy monetary policy that the U.S. Federal Reserve System pursued during the early years of that decade…” Link

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Can Oil Prices Forecast Exchange Rates?

Can Oil Prices Forecast Exchange Rates? Kenneth Rogoff, 2012, Paper. “This paper investigates whether oil prices have a reliable and stable out-of-sample relationship with the Canadian/U.S dollar nominal exchange rate. Despite state-of-the-art methodologies, we find little systematic relation between oil prices and the exchange rate at the monthly and quarterly frequencies. In contrast, the main contribution is to show the existence of a very short-term relationship at the daily frequency, which is rather robust and holds no matter whether we use contemporaneous (realized) or lagged oil prices in our regression…” Link

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The Optimal Conduct of Monetary Policy with Interest on Reserves

The Optimal Conduct of Monetary Policy with Interest on Reserves. Jeremy Stein, January 2012, Paper. “In a world with interest on reserves, the central bank has two distinct tools that it can use to raise the short-term policy rate: it can either increase the interest it pays on reserve balances, or it can reduce the quantity of reserves in the system. We argue that by using both of these tools together, and by broadening the scope of reserve requirements, the central bank can simultaneously pursue two objectives: it can manage the inflation-output tradeoff using a Taylor-type rule, and it can regulate the externalities…” (May require user account or purchase) Link

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International Prices and Exchange Rates

International Prices and Exchange Rates. Gita Gopinath, 2012, Paper. “Milton Friedman advocated flexible exchange rates on the premise that they would allow the relative prices of domestic and foreign goods to adjust in a world with nominal rigidities. The strength of his argument, and its implications for monetary and exchange rate policy, depend crucially on the specifics of nominal rigidity: How rigid are prices? Are prices fixed in the producer’s currency or in the local currency? When prices adjust, how much do they respond to exchange rate shocks?” Link

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Do We Need to Rethink Growth Policies?

Do We Need to Rethink Growth Policies? Dani Rodrik, Paper, January 2012. “The current economic crisis has taught us new things, but it does not require a complete rethinking of what we know about growth. The main new thing is that the context in which we are going to think about growth policies might be different. The context arises partly from the difficulties that the advanced countries are going to be facing with the debt overhang and possibly lower growth. What does that do to the growth prospects of the developing countries?” Link

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