Recent Developments on Money and Finance

Language: English

Published by Springer Berlin Heidelberg Feb 2010, 2010

3642066178 / 9783642066177

Series: Book 15 of 29 - Studies in Economic Theory

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Seller: BuchWeltWeit Ludwig Meier e.K., Bergisch Gladbach, GermanyBuchWeltWeit Ludwig Meier e.K.

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This item is printed on demand - it takes 3-4 days longer - Neuware -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. 280 pp. Englisch.…

Seller Inventory # 9783642066177

Title
Recent Developments on Money and Finance
Author
Gabriele Camera
Publisher
Springer Berlin Heidelberg Feb 2010
Publication year
2010
Condition
Neu
Binding
Taschenbuch
Language
English
ISBN 10
3642066178
ISBN 13
9783642066177
Item weight
429 grams
Dimensions
235x155x16 mm
Series
Book 15 of 29: Studies in Economic Theory

BuchWeltWeit Ludwig Meier e.K.

Bergisch Gladbach, Germany

5-star seller

AbeBooks seller since January 11, 2012

Shipping rates from Germany to U.S.A.

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BuchWeltWeit Ludwig Meier e.K.

Germany