This paper makes a case that the global imbalances of the 2000s and the recent global
financial crisis are intimately connected. Both have their origins in economic policies …

This paper quantifies the relative importance of the different channels of CPI responsiveness
to exchange rates and import prices across 21 industrialized economies. The paper …

We explain the role of the Phillips Curve in the analysis of the economic outlook and the
formulation of monetary policy at the ECB. First, revisiting the structural Phillips Curve, we …

This paper is a partial exploration of mechanisms through which global factors influence the
tradeoffs that US monetary policy faces. It considers three main channels. The first is the …

Domestic factors, such as credit and preference shocks, can explain the negative correlation
between house prices and the current account in the US and several other countries before …

In closed or open economy models with complete markets, targeting core inflation enables
monetary policy to maximize welfare by replicating the flexible price equilibrium. We analyze …

This article considers recent literature on optimal monetary policy in simple open-economy
models. The presence of pricing to market, incomplete financial markets, and differences in …

We examine the role of monetary policy in the housing bubble. Our review examines the
setting of monetary policy in the middle of this decade, the impetus from monetary policy to …

We use a quantitative equilibrium model with houses, collateralized debt and foreign
borrowing to study the impact of global imbalances on the US economy in the 2000s. Our …

We assess the effects of a temporary fiscal devaluation enacted in Spain on the trade
balance by simulating EAGLE, a large-scale multi-country dynamic general equilibrium …