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Author: Enrique Martinez-Garcia
Publisher: DIANE Publishing
ISBN: 143798066X
Category : Business & Economics
Languages : en
Pages : 37
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Book Description
Illustrates the analytical content of the global slack hypothesis in the context of variant of the New Open-Economy Macro model under the assumptions of both producer currency pricing and local currency. The model predicts that the Phillips curve for domestic CPI inflation will be flatter under most plausible parameterizations, the more important international trade is to the domestic economy. The model also predicts that foreign output gaps will matter for inflation dynamics, along with the domestic output gap. When the Phillips curve includes the terms of trade gap rather than the foreign output gap, the response of domestic inflation to the domestic output gap is the same as in the closed-economy case ¿ceteris paribus.¿ This is a print on demand report.
Author: Enrique Martinez-Garcia
Publisher: DIANE Publishing
ISBN: 143798066X
Category : Business & Economics
Languages : en
Pages : 37
Get Book Here
Book Description
Illustrates the analytical content of the global slack hypothesis in the context of variant of the New Open-Economy Macro model under the assumptions of both producer currency pricing and local currency. The model predicts that the Phillips curve for domestic CPI inflation will be flatter under most plausible parameterizations, the more important international trade is to the domestic economy. The model also predicts that foreign output gaps will matter for inflation dynamics, along with the domestic output gap. When the Phillips curve includes the terms of trade gap rather than the foreign output gap, the response of domestic inflation to the domestic output gap is the same as in the closed-economy case ¿ceteris paribus.¿ This is a print on demand report.
Author: Bank for International Settlements
Publisher:
ISBN:
Category :
Languages : en
Pages : 6
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Book Description
Resource utilisation, or “slack”, is widely held to be an important determinant of inflation dynamics. As the world has become more globalised in recent decades, some have argued that the relevant concept of slack should be global rather than domestic (the “global slack hypothesis”). This line of argument is consistent with standard New Keynesian theory. However, the empirical evidence is, at best, fragile possibly because of a disconnect between empirical and theory-consistent measures of output gaps.Full publication: "http://ssrn.com/abstract=2248714" Globalisation and Inflation Dynamics in Asia and the Pacific.
Author: Enrique Martínez-García
Publisher:
ISBN:
Category :
Languages : en
Pages : 6
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Book Description
Resource utilization, or "slack", is widely held to be an important determinant of inflation dynamics. As the world has become more globalized in recent decades, some have argued that the concept of slack that is relevant is global rather than domestic (the "global slack hypothesis"). This line of argument is consistent with standard New Keynesian theory. However, the empirical evidence is fragile, at best, possibly because of a disconnect between empirical and theory-consistent measures of output gaps.
Author: Enrique Martínez-García
Publisher:
ISBN:
Category :
Languages : en
Pages : 53
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Book Description
The global slack hypothesis is central to the discussion of the trade-offs that monetary policy faces in an increasingly more integrated world. The workhorse New Open Economy Macro (NOEM) model of Martínez-García and Wynne (2010), which fleshes out this hypothesis, shows how expected future local inflation and global slack affect current local inflation. In this paper, I propose the use of the orthogonalization method of Aoki (1981) and Fukuda (1993) on the workhorse NOEM model to further decompose local inflation into a global component and an inflation differential component. I find that the log-linearized rational expectations model of Martínez-García and Wynne (2010) can be solved with two separate subsystems to describe each of these two components of inflation. I estimate the full NOEM model with Bayesian techniques using data for the U.S. and an aggregate of its 38 largest trading partners from 1980Q1 until 2011Q4. The Bayesian estimation recognizes the parameter uncertainty surrounding the model and calls on the data (inflation and output) to discipline the parameterization. My findings show that the strength of the international spillovers through trade--even in the absence of common shocks--is reflected in the response of global inflation and is incorporated into local inflation dynamics. Furthermore, I find that key features of the economy can have different impacts on global and local inflation--in particular, I show that the parameters that determine the import share and the price-elasticity of trade matter in explaining the inflation differential component but not the global component of inflation.
Author: Francesco Bianchi
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
Author: Fredj Jawadi
Publisher: Emerald Group Publishing
ISBN: 1784417793
Category : Business & Economics
Languages : en
Pages : 559
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Book Description
This is Volume 24 of the monograph series International Symposia in Economic Theory and Econometrics. ISETE publishes proceedings of conferences and symposia, as well as research monographs of the highest quality and importance.
Author: Laurent Ferrara
Publisher: Springer
ISBN: 3319790757
Category : Business & Economics
Languages : en
Pages : 300
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Book Description
This book collects selected articles addressing several currently debated issues in the field of international macroeconomics. They focus on the role of the central banks in the debate on how to come to terms with the long-term decline in productivity growth, insufficient aggregate demand, high economic uncertainty and growing inequalities following the global financial crisis. Central banks are of considerable importance in this debate since understanding the sluggishness of the recovery process as well as its implications for the natural interest rate are key to assessing output gaps and the monetary policy stance. The authors argue that a more dynamic domestic and external aggregate demand helps to raise the inflation rate, easing the constraint deriving from the zero lower bound and allowing monetary policy to depart from its current ultra-accommodative position. Beyond macroeconomic factors, the book also discusses a supportive financial environment as a precondition for the rebound of global economic activity, stressing that understanding capital flows is a prerequisite for economic-policy decisions.
Author: Jordi Galí
Publisher: University of Chicago Press
ISBN: 0226278875
Category : Business & Economics
Languages : en
Pages : 663
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Book Description
United States monetary policy has traditionally been modeled under the assumption that the domestic economy is immune to international factors and exogenous shocks. Such an assumption is increasingly unrealistic in the age of integrated capital markets, tightened links between national economies, and reduced trading costs. International Dimensions of Monetary Policy brings together fresh research to address the repercussions of the continuing evolution toward globalization for the conduct of monetary policy. In this comprehensive book, the authors examine the real and potential effects of increased openness and exposure to international economic dynamics from a variety of perspectives. Their findings reveal that central banks continue to influence decisively domestic economic outcomes—even inflation—suggesting that international factors may have a limited role in national performance. International Dimensions of Monetary Policy will lead the way in analyzing monetary policy measures in complex economies.
Author: Bharati, Pratyush
Publisher: IGI Global
ISBN: 1615206280
Category : Computers
Languages : en
Pages : 410
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Book Description
Small and medium-sized enterprises (SMEs) play a critical role in rejuvenating and sustaining the modern economy, generating substantial employment and serving as important innovation engines for the global economy. Global Perspectives on Small and Medium Enterprises and Strategic Information Systems: International Approaches aims to spread research conducted on SMEs internationally and place it at the disposal of academics, practitioners, consultants, the vendor community, and policymakers. The goal of this book is to highlight the challenges faced by SMEs and how they are coping with the adverse environment through skillful use of IT and technologies such as Web 2.0, Enterprise Resource Planning (ERP), e-commerce, open source software, Business Process Digitization (BPD), and other emerging technologies.
Author: Nathan Balke
Publisher: Emerald Group Publishing
ISBN: 1781903050
Category : Business & Economics
Languages : en
Pages : 480
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Book Description
This volume of Advances in Econometrics contains articles that examine key topics in the modeling and estimation of dynamic stochastic general equilibrium (DSGE) models. Because DSGE models combine micro- and macroeconomic theory with formal econometric modeling and inference, over the past decade they have become an established framework for analy
