Found 43 article(s) for author 'Gita Gopinath'

Even if growth has bottomed out, there is no reason to cheer: Gita Gopinath

Even if growth has bottomed out, there is no reason to cheer: Gita Gopinath. Gita Gopinath, December 12, 2013, Opinion. “The next central government will have to push through economic reforms that have been talked about for years but have not been implemented, said Gita Gopinath, professor of economics at the Harvard University. In an interview, Gopinath, who is in New Delhi to attend the Delhi Economics Conclave, comments on India’s economic potential and on how curtailing inflation is important in the long run…”  Link verified March 28, 2014

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The IMF’s Next Test

The IMF’s Next Test. Gita Gopinath, October 1, 2013, Opinion. “In October, central bankers, policymakers, private-sector executives, academics, and representatives of civil-society organizations will convene in Washington, DC, for the annual joint meeting of the International Monetary Fund and the World Bank. Among the most important outcomes this year will be the IMF Board of Governors’ decision regarding how to address current international monetary issues…” Link

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Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises

Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises. Mark Aguiar, Manual Amador, Emmanuel Farhi, and Gita Gopinath, 2013, Paper. “We explore the role of inflation credibility in self-fulfilling debt crises. In particular, we propose a continuous time model of nominal debt with the potential for self-fulfilling debt crises as in Calvo (1988) and Cole and Kehoe (2000). We characterize crisis equilibria conditional on the level of commitment to low inflation. With strong commitment, which can be interpreted as joining a monetary union or issuing foreign currency debt, the environment…” Link

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Coordination and Crisis in Monetary Unions

Coordination and Crisis in Monetary Unions. Gita Gopinath, September 8, 2013, Paper. “We characterize fiscal and monetary policy in a monetary union with the potential for rollover crises in sovereign debt markets. Member-country fiscal authorities lack commitment to repay their debt and choose fiscal policy independently. A common monetary authority chooses inflation for the union, also without commitment. We first describe the existence of a fiscal externality that arises in the presence of limited commitment and leads countries to over borrow; this externality rationalizes…” Link verified March 28, 2014

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Fiscal Devaluations

Fiscal Devaluations. Emmanuel Farhi, Gita Gopinath, August 29, 2013, Paper. “We show that even when the exchange rate cannot be devalued, a small set of conventional fiscal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open economy environment. We perform the analysis under alternative pricing assumptions—producer or local currency pricing, along with nominal wage stickiness; under arbitrary degrees of asset market completeness and for general stochastic sequences of devaluations…”  Link verified March 28, 2014

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Investors are particularly nervous about India: Gita Gopinath, Harvard University

Investors are particularly nervous about India: Gita Gopinath, Harvard University. Gita Gopinath, June 23, 2013, Opinion. “To orderly unwind the extraordinary monetary easing that has taken place in recent years is a challenge for any central banker, including Bernanke. There are many unknowns as some of the interventions like QE have no historical precedence. What I will say is that I am glad that Bernanke is at the helm of affairs to see this through since he is a remarkable monetary economist. Most of the impact of the unwinding will, however, take place next year when Bernanke’s term comes to an end…” Link verified June 19, 2014

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Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises

Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises. Gita Gopinath, June 21, 2013, Paper. “We explore the role of inflation credibility in self-fulfilling debt crises. In particular, we propose a continuous time model of nominal debt with the potential for self-fulfilling debt crises as in Calvo (1988) and Cole and Kehoe (2000). We characterize crisis equilibria conditional on the level of commitment to low inflation. With strong commitment, which can be interpreted as joining a monetary union or issuing foreign currency debt, the environment is a version of the one studied by Cole and Kehoe…” Link verified June 19, 2014

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Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises

Crisis and Commitment: Inflation Credibility and the Vulnerability to Sovereign Debt Crises. Gita Gopinath, June 21, 2013, Paper. “We propose a continuous time model of nominal debt and investigate the role of inflation credibility in the potential for self-fulfilling debt crises. Inflation is costly, but reduces the real value of outstanding debt without the full punishment of default. With high inflation credibility, which can be interpreted as joining a monetary union or issuing foreign currency debt, debt is effectively real. By contrast, with low inflation credibility, sovereign debt is nominal and in a debt crisis a government may opt to inflate away a fraction of the debt burden rather than explicitly default…” Link

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Trade Adjustment and Productivity in Large Crises

Trade Adjustment and Productivity in Large Crises. Gita Gopinath, May 10, 2013, Paper. “We empirically characterize the mechanics of trade adjustment during the Argentine crisis using detailed transaction-level customs data covering the universe of import transactions during 1996-2008. Though imports collapsed by nearly 70 percent from 2000-2002, the entry and exit of firms or products at the country level (the “extensive margin”) played a small role in this adjustment. By contrast, the within-firm churning of inputs (the sub-extensive margin”) played a sizeable role, and we highlight significant heterogeneity…”  Link verified March 28, 2014

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Trade Adjustment and Productivity in Large Crises

Trade Adjustment and Productivity in Large Crises. Gita Gopinath, May 10, 2013, Paper. ““We empirically characterize the mechanics of trade adjustment during the Argentine crisis. Though imports collapsed by 70 percent from 2000-2002, the entry and exit of firms or products at the country level played a small role. The within-firm churning of imported inputs, however, played a sizeable role. We build a model of trade in intermediate inputs with heterogeneous firms, fixed import costs, and roundabout production. Import demand is non-homothetic and the implications of an import price shock depend on the full distribution of firm-level adjustments…” Link

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