Recent Developments on Money and Finance : Exploring Links between Market Frictions, Financial Systems and Monetary Allocations

Lingua: inglese

Editore: Springer, 2010

3642066178 / 9783642066177

Serie: Libro 15 di 29 - Studies in Economic Theory

Da: AHA-BUCH GmbH, Einbeck, GermaniaAHA-BUCH GmbH

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Druck auf Anfrage Neuware - Printed after ordering - nomic activity. The paper highlights how the interaction of domestic informational frictions, perfect capital mobility, and foreign interest rates can combine to provoke a sudden depreciation of the exchange rate and a prolonged decline in output. In particular,theauthorsdescribeconditionsunderwhichtwodifferentequilibriaexist. One has a high level of outputand a minorcostly-state-veri cationproblem,and the other equilibrium has a higher level of output and a severe costly-state-veri cation problem. In addition, the authors show how their model can successfully simulate a crisispaththatisqualitativelyconsistentwithoccurrencessuchastheMexican n- cial crisis in 1994. An importantlesson emergingfromthis work is that even a small change in external factors can generate a crisis path, when this initial shock hits a small open monetary economy, if the economy features a combination of domestic informational frictions with international capital ows. The next paper, by Hernandez-Verme, also focuses on the study of small open economieswithinthe contextofan overlappinggenerationsmodel. Unlike Antinol and Huybens, however, her main concern is the relative merits of different methods for achievingprice stability. To do so she mergesthe overlappinggenerationsmodel with a spatial model of Townsendto comparethe meritsof alternativeexchangerate regimes namely, xed and exible. This analysis is carried out within a context where nancial intermediaries perform a real allocative function, there are multiple reserverequirements,andtheeconomyissubjecttocreditmarketfrictions. She nds there is scope for endogenousvolatility, independent of the exchange rate regime in place. Another key nding is that under oating exchange rates, a positive trade-off between domestic in ation and output can be exploited under credit rationing but only if in ation is small. In fact, there exists an in ation threshold beyond which domestic output suffers.…

Codice articolo 9783642066177

Titolo
Recent Developments on Money and Finance : Exploring Links between Market Frictions, Financial Systems and Monetary Allocations
Autore
Gabriele Camera
Editore
Springer
Anno di pubblicazione
2010
Condizione
Neu
Rilegatura
Taschenbuch
Lingua
inglese
ISBN 10
3642066178
ISBN 13
9783642066177
Peso dell'articolo
429 grammi
Dimensioni
235x155x16 mm
Serie
Libro 15 di 29: Studies in Economic Theory

AHA-BUCH GmbH

Einbeck, Germania

Venditore con 5 stelle

Venditore AbeBooks dal 14 agosto 2006

Tariffe di spedizione da Germania a U.S.A.

ArticoloDa 7 a 10 giorni lavorativiDa 5 a 7 giorni lavorativi
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