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作者：Devereux, MB; Lee, KM
作者单位：University of British Columbia; National University of Singapore
摘要：This paper examines the interaction between international financial markets and trade policy. When trade policy is endogenous, there is a secondary gain from opening up financial markets, in addition to the direct risk-sharing benefits. By breaking the direct link between the terms of trade and welfare, international portfolio diversification can allow for a lower level of trade protection in a tariff game between governments, We apply the model to an estimation of the welfare gains from inter...
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作者：Christiano, LJ; Harrison, SG
作者单位：Northwestern University; Federal Reserve System - USA; National Bureau of Economic Research; Columbia University
摘要：We consider a real business cycle model with an externality in production. Depending on parameter values, the model has sunspot equilibria, cyclical and chaotic equilibria, and equilibria with deterministic or stochastic regime switching. We study the implications of this model environment for automatic stabilizer tax systems. Stabilization is desirable because the efficient allocations are characterized by constant employment and output growth. We identify an automatic stabilizer income tax-s...
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作者：Grossman, HI; Han, T
作者单位：Brown University; Chung Ang University
摘要：This paper shows that whether or not a sovereign can borrow to smooth consumption depends both on how consumption smoothing is achieved, whether by contingent debt issuance or by contingent debt servicing, and on the penalty for debt repudiation. If a sovereign that repudiated its debt could not borrow again, but could continue to save and to dissave, then contingent debt issuance, without contingent debt servicing, cannot support a positive amount of uncollateralized sovereign debt. But, with...
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作者：Cushing, MJ
作者单位：University of Nebraska System; University of Nebraska Lincoln
摘要：This paper investigates the issue of price level indeterminacy under a pure interest rate peg in models that depart from standard Ricardian assumptions. Using a monetary version of Blanchard's finite horizons model, I find wealth effects operating on government bonds are not sufficient to determine a unique price level. Next, I consider price determination under a non-Ricardian fiscal authority. I show that, if agents rationally perceive the possibility of fiscal default, the price level is ag...
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作者：Faust, J; Irons, JS
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; Massachusetts Institute of Technology (MIT)
摘要：The political economy literature has enshrined as stylized fact the view that lower inflation and temporarily lower growth follow the election of Republican presidents and has emphasized political manipulation of monetary policy as an explanation. Support for the monetary explanation comes in econometric work that largely ignores identification issues that dominate the literature on measuring the effects of monetary policy. We generalize a standard vector autoregression framework to accommodat...
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作者：Tootell, GMB
作者单位：Federal Reserve System - USA
摘要：The rising inflation of the 1970s inspired substantial theoretical analysis of the goals of central banks. In models with time-inconsistent monetary policy, central bankers are assumed to produce positive equilibrium inflation because they target an unemployment rate below the NAIRU. Ball (1995) notes that these models could explain the level of inflation but not its frequent and persistent movements. Although real shocks, as in Rogoff (1985), can produce temporary changes in inflation, Ball e...
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作者：Peretto, PF
作者单位：Duke University
摘要：I study the joint determination of market structure and growth in an oligopolistic economy. Firms run in-house R&D programs to produce over time a continuous flow of cost-reducing innovations. In symmetric equilibrium, the relation between market structure and growth has two aspects, First, a larger number of firms induces fragmentation of the market and dispersion of R&D resources. This prevents exploitation of scale economies internal to the firm and slows down growth. Second, the number of ...
