- ————. 2006. “Monetary Policy Inertia: Fact or Fiction?†International Journal of Central Banking 2(4): 85–135.
Paper not yet in RePEc: Add citation now
- ————. 2013. “Dilemma Not Trilemma? Capital Controls and Exchange Rates with Volatile Capital Flows.†Working Paper 133566, Harvard University OpenScholar.
Paper not yet in RePEc: Add citation now
- ————. 2013b. “Financial Crises and Exchange Rate Policy.†Economics Working Paper 1431, Department of Economics and Business, Universitat Pompeu Fabra.
Paper not yet in RePEc: Add citation now
- ————. 2015. “Currency Wars or Efficient Spillovers?†Manuscript, Johns Hopkins University.
Paper not yet in RePEc: Add citation now
- ————. 2015.“International Channels of Transmission of Monetary Policy and the Mundellian Trilemma.†CEPR Discussion Paper 11027.
Paper not yet in RePEc: Add citation now
- ————. 2016a. “Downward Nominal Wage Rigidity, Currency Pegs, and Involuntary Unemployment.†Journal of Political Economy, 124: 1466-1514.
Paper not yet in RePEc: Add citation now
- ————. 2016b. “Revisiting Macroprudential Policy in OpenEconomy Models with Financial Frictions.†Manuscript, Columbia University.
Paper not yet in RePEc: Add citation now
Aguiar, M. and G. Gopinath. 2007.“Emerging Market Business Cycles: The Cycle Is the Trend.†Journal of Political Economy 115: 69–102.
- Aruoba, S.B. and F. Schorfheide. 2013.“Macroeconomic Dynamics Near the ZLB: A Tale of Two Equilibria.†Working Paper 13-29, Federal Reserve Bank of Philadelphia.
Paper not yet in RePEc: Add citation now
Bianchi, J. 2011. “Overborrowing and Systemic Externalities in the Business Cycle.†American Economic Review 101(7): 3400–26.
- Bianchi, J. and E.G. Mendoza. 2010.“Overborrowing, Financial Crises and ‘Macroprudential’ Taxes.†Working Papers 16091, National Bureau of Economic Research, Inc, June ————. 2013. “Optimal Time-Consistent Macroprudential Policy.†Working Paper 19704, National Bureau of Economic Research.
Paper not yet in RePEc: Add citation now
Chen, H., D. Levy, S. Ray, and M. Bergen. 2008. “Asymmetric Price Adjustment in the Small.†Journal of Monetary Economics 55(4): 728–37.
Christiano, L.J., M. Eichenbaum, and C.L. Evans. 2005. “Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy.†Journal of Political Economy 113(1): 1–45.
Costinot, A., G. Lorenzoni, and I. Werning. 2014. “A Theory of Capital Controls as Dynamic Terms-of-Trade Manipulation.†Journal of Political Economy 122(1): 77–128.
- Devereux, M.B. and C. Yu. 2014. “International Financial Integration and Crisis Contagion.†Working Paper 20526, National Bureau of Economic Research.
Paper not yet in RePEc: Add citation now
Engel, C. 2015. “Macroprudential Policy in a World of High Capital Mobility: Policy Implications from an Academic Perspective.†Working Paper 20951, National Bureau of Economic Research.
Farhi, E. and I. Werning. 2012. “Dealing with the Trilemma: Optimal Capital Controls with Fixed Exchange Rates.†Working Paper 18199, National Bureau of Economic Research.
Gali, J. and T. Monacelli. 2005. “Monetary Policy and Exchange Rate Volatility in a Small Open Economy.†Review of Economic Studies 72(3): 707–34.
Gali, Jordi. 2015) Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework (the Second Edition, Princeton University Press).
Georgiadis, G. and A. Mehl. 2015.“Trilemma, Not Dilemma: Financial Globalisation and Monetary Policy Effectiveness.†Globalization and Monetary Policy Institute Working Paper 222, Federal Reserve Bank of Dallas.
Jeanne, O. and A. Korinek. 2010.“Excessive Volatility in Capital Flows: A Pigouvian Taxation Approach.†American Economic Review 100(2): 403–07.
- Khan, H. 2005. “Price-Setting Behaviour, Competition, and Markup Shocks in the New Keynesian Model.†Economics Letters 87(3): 329–35.
Paper not yet in RePEc: Add citation now
Kim, J. and F.J. Ruge-Murcia. 2009.“How Much Inflation Is Necessary to Grease the Wheels?†Journal of Monetary Economics 56(3): 365–77.
Korinek,A. 2011.“The New Economics of Prudential Capital Controls: A Research Agenda.†IMF Economic Review 59(3): 523–61.
Liu, Z. and M.M. Spiegel. 2015.“Optimal Monetary Policy and Capital Account Restrictions in a Small Open Economy.†IMF Economic Review 63(2): 298–324.
- Lorenzoni, G. 2015. “Chapter 12 - International Financial Crises.†In Handbook of International Economics, vol 4, edited by K. Rogoff, E. Helpman, and G. Gopinath, Elsevier.
Paper not yet in RePEc: Add citation now
- Mendoza, E.G. 2010. “Sudden stops, Financial Crises, and Leverage.†American Economic Review 100(5): 1941–66.
Paper not yet in RePEc: Add citation now
- Monetary Policy Responses to External Spillovers International Monetary Fund. 2014. Regional Economic Outlook:Asia and Pacific World Economic and Financial Surveys. Washington, D.C.: IMF.
Paper not yet in RePEc: Add citation now
- Ottonello, P. 2015. “Optimal Exchange Rate Policy under Collateral Constraints and Wage Rigidity.†Manuscript, University of Michigan.
Paper not yet in RePEc: Add citation now
Peltzman, S. 2000. “Prices Rise Faster than They Fall.†Journal of Political Economy 108(3): 466–502.
- Rey, H. 2013.“Dilemma Not Trilemma:The Global Cycle and Monetary Policy Independence.†Proceedings - Economic Policy Symposium - Jackson Hole.
Paper not yet in RePEc: Add citation now
- Rotemberg, J.J. 1982.“Monopolistic Price Adjustment and Aggregate Output.†Review of Economic Studies 49(4): 517–31.
Paper not yet in RePEc: Add citation now
- Schittkowski, K. 2014. “NLPQLP: A Fortran Implementation of a Sequential Quadratic Programming Algorithm with Distributed and Non-Monotone Line Search—User’s Guide, version 4.2.†Report, Department of Computer Science, University of Bayreuth.
Paper not yet in RePEc: Add citation now
Tauchen, G. and R. Hussey. 1991. “Quadrature-Based Methods for Obtaining Approximate Solutions to Nonlinear Asset Pricing Models.†Econometrica 59(2): 371–96.
Uribe, M. and V.Z. Yue. 2006. “Country Spreads and Emerging Countries: Who Drives Whom?†Journal of International Economics 69(1): 6–36.
- Varian, H.R. 1975.“A Bayesian Approach to Real Estate Assessment.†Studies in Bayesian Econometrics and Statistics in Honor of Leonard J. Savage. Monetary Policy Responses to External Spillovers APPENDIX A. MEASURES OF WELFARE The lifetime utility for a representative household in the small economy, conditional on the initial debt level and exogenous shocks can be written as (A-1) We define a certainty equivalence of effective consumption in a policy regime conditional on an initial state as Rearranging the equation yields (A-2) We will use to measure conditional welfare in the main text. The unconditional welfare Wel is measured in a similar way except that the welfare Wel is a weighted average of conditional welfare over the whole domain in the stationary equilibrium.
Paper not yet in RePEc: Add citation now