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Keywords:Economic stabilization 

Journal Article
A monetarist model for economic stabilization

Review , Volume 52 , Issue Apr , Pages 7-25

Working Paper
The double play: simultaneous speculative attacks on currency and equity markets

This paper investigates the potential for foreign speculators to profit from simultaneously taking short positions in foreign exchange and equity markets under a fixed exchange rate regime, in what has been termed as the double play. Such a strategy is considered when the monetary authority is faced with two conflicting objectives exchange rate stability and low interest rates. While the monetary authority may not be able to directly intervene to stabilize interest rates under the fixed exchange rate regime, it may consider intervention in equity markets to head off speculative pressure on ...
Working Paper Series , Paper WP-00-17

Conference Paper
Commentary : Is there a role for discretionary fiscal policy?

Proceedings - Economic Policy Symposium - Jackson Hole

Discussion Paper
Have postwar economic fluctuations been stabilized?

Previous investigations of whether the volatility of the U.S. economy diminished after World War II have been inconclusive because of questionable prewar macroeconomic aggregates. We examine, more broadly, the hypothesis of the stabilization of the postwar economy by focusing on the duration of business cycles, rather than their amplitude; in the process, we avoid the debate about the quality of prewar aggregates. Using distribution-free statistics, we find clear evidence of postwar duration stabilization in terms of a shift toward longer expansions and shorter contractions. Moreover, we find ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 33

Conference Paper
Overview: central bank perspectives

Proceedings - Economic Policy Symposium - Jackson Hole

Journal Article
Strategic behavior in the tri-party repo market

The repo market in the United States played a significant role during the 2007?2009 global financial crisis. A large portion of the transactions in this market take the form of a tri-party repo, where a third party (a clearing bank) intermediates between the borrower and the lender. The sudden withdrawal of tri-party repo funding was a critical factor leading to the demise of Bear Stearns. It is now widely believed that the tri-party repo infrastructure has some serious vulnerabilities. Using non-cooperative game theory to analyze the strategic interactions between the main players in this ...
Economic Quarterly , Volume 97 , Issue 4Q , Pages 389-413

Working Paper
A quantitative defense of stabilization policy

In an analysis of the value of growth and stabilization of consumption, Robert Lucas presents a stunning set of calculations implying that a permanent increase in the growth rate of consumption of only one-tenth percentage point per year is worth nearly 50 times as much to consumers as complete elimination of consumption variability. This is because the higher growth of consumption is worth a lot while the reduced variability is worth virtually nothing (at least in the post-war United States). Taken at face value, such a result supports the pursuit of feasible growth policies but calls into ...
Finance and Economics Discussion Series , Paper 2000-34

Journal Article
Financial globalization: gain and pain for developing countries

Economies around the world are becoming increasingly interconnected by the unprecedented breadth and depth of financial globalization. Developed countries tend to be most actively involved in cross-country capital movement, but in recent years developing countries have begun to participate in the process. ; This article focuses on the integration of developing countries into the international financial system. It examines recent developments and the principal agents of financial globalization as well as globalization?s effect on the domestic financial sector. Financial liberalization tends to ...
Economic Review , Volume 89 , Issue Q 2 , Pages 39 - 66

Journal Article
Stabilization policy and inflation

Review , Volume 51 , Issue Feb , Pages 2-6

Journal Article
What's new about the new economy? : some lessons from the current expansion

Southwest Economy , Issue Jul , Pages 7-11

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