Stabilization dynamics and backward-looking contracts

by Guillermo A. Calvo

Publisher: International Monetary Fund in Washington, D.C

Written in English
Published: Pages: 25 Downloads: 871
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Edition Notes

Includes bibliographical references.

Statementprepared by Guillermo A. Calvo and Carlos A. Végh.
SeriesIMF working paper -- WP/93/29
ContributionsVégh Gramont, Carlos A., 1958-, International Monetary Fund. Research Dept.
The Physical Object
Paginationiii, 25 p. ;
Number of Pages25
ID Numbers
Open LibraryOL18069726M

Lot of work that has been made in Kosovo's long road towards integration in the European Union is establishing the Tracking Mechanism of the Stabilization and .   Siemens Healthineers AG (OTC:SEMHF) Q2 Earnings Conference Call May 5, AM ET Company Participants Marc Koebernick - Head, Investor Relations Bernd Montag - President and Chief. This book tries to recover this notion of an immanent world reason, albeit without the archaic, quasi-theological trappings that render this notion untenable to a more knowledgeable and secular society. We have entered an era that consists no longer of institutional stabilization but of institutional decay. A widespread alienation is. Full text of "Tooze, Adam The Wages Of Destruction The Making And Breaking Of The Nazi Economy" See other formats.

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Modern Hyper- and High Inflations STANLEYFISCHEK, RATNA SAHA and CARLOSA. VEGH 1. Zntroclztction. s HIS CL-~SSICIVORK, Phillip Cagan () studied seven of the eight hyperinflations that took place between and ~ Cagan defined a hperinflation as beginning in the nlonth inflation first exceeds 50 per- cent (per month) and as ending in the . Heterogeneous beliefs and routes to complex dynamics in asset pricing models with price contingent contracts. In C. H. Hommes, R. Ramer, & C. Withagen (Eds.), Equilibrium, markets and dynamics: essays in honour of Claus Weddepohl (pp. ). So, before taking out the cheque book, it is important to ensure alignment between the AI strategy and overall business strategy, as well as alignment between the AI strategy and the in-house capabilities. The high-level SWOT analysis shown below can further assist in assessing risks before officially “greenlighting” AI investment. His book on French Rural History () is in some respects his most personal book, because of its focus on rural peasant economy and society with which Bloch identified so strongly. It examined the longue durée of history from the twelfth to the eighteenth centuries and used the “regressive” method of moving from the known to the unknown.

Stabilization dynamics and backward-looking contracts by Guillermo A. Calvo Download PDF EPUB FB2

Stabilization Dynamics and Backward-Looking Contracts. this formulation with its focus on a backward-looking expectations process appears untenable in the context of warravaged economies that.

Get this from a library. Stabilization Dynamics and Backward-Looking Contracts. [Carlos A Végh Gramont; Guillermo Calvo] -- Exchange rate-based stabilizations often result in an initial output expansion.

One explanation for this phenomenon has been that, in the presence of inflation inertia, a reduction in the nominal. Downloadable (with restrictions). Exchange rate-based stabilizations often result in an initial output expansion. One explanation for this phenomenon has been that, in the presence of inflation inertia, a reduction in the nominal interest rate causes the domestic real interest rate to fall, thus increasing aggregate demand.

This paper reexamines this issue in the context of an. "Stabilization dynamics and backward-looking contracts," Journal of Development Economics, Elsevier, vol. 43(1), pagesFebruary.

Carlos A. Végh Gramont & Guillermo Calvo, " Stabilization Dynamics and Backward-Looking Contracts," IMF Working Papers 93/29, International Monetary Fund.

Stabilization dynamics and backward-looking contracts. Journal of Development Econom 59– Foundations of International Macroeconomics Disinflation Author: Piero Ghezzi. “Stabilization Dynamics and Backward-Looking Contracts” with C. Végh, Journal of Development Economics, 43(1), “Targeting the Real Exchange Rate: Theory and Evidence” with C.

Reinhart and C. Végh, Journal of Development Economics, From Centrally-Planned to Market Economies: The Road from CPE to PCPE - Ebook written by Mr. Jacob A. Frenkel, Mr. Guillermo Calvo. Read this book using Google Play Books app on your PC, android, iOS devices. Download for offline reading, highlight, bookmark or take notes while you read From Centrally-Planned to Market Economies: The Road from CPE to PCPE.

Stabilization dynamics and backward-looking contracts Journal of Development Economics,43, (1), View citations (41) See also Working Paper () Currency substitution and the optimal inflation tax Economics Letters,42, (1), View citations (3) The optimal inflation tax when money reduces transactions costs: A.

Controversies on Exchange Rate Systems. Authors; Authors and affiliations; Michael Frenkel Calvo, G. and C. Végh (), Stabilization Dynamics and Backward-Looking Contracts, IMF Working Paper No. WP/93/29 G. and C. Végh (), Inflation Stabilization and Nominal Anchors, IMF Paper on Policy Analysis and Assessment No Author: Michael Frenkel.

Again assume that the joint dynamics of consumption growth and inflation are described by state dynamics (1) and the mapping (43).Then the variations in real and nominal risk-free rates implied by this recursive utility framework are identical to the variations implied by power utility with a unit elasticity of intertemporal substitution.

Carlos Vegh: current contact information and listing of economic research of this author provided by RePEc/IDEAS/CitEc. Fourth, the inertia of the inflation process implies that contracts that are not explicitly indexed in a backward-looking way, such as short-term loans in the financial system, cany forward-looking inflation adjustments.

At any point in time, a given stock of such contracts are outstanding. Their maturity may run. Inflation Stabilization and BOP Crises in Developing Countries outburst before a political consensus for a stabilization emerges.

In the war-of-attrition framework just described, Drazen and Grilli () show how a higher rate of inflation may be welfare-improving by bringing forward the expected time of by: Rules for Monetary Policy For example, if wages are flexible (or there are efficient contracts in the labor market), or if some prices are adjusted in accordance with a backward-looking "rule of thumb," as proposed in the empirical model of inflation dynamics of Jordi Gali and Mark Gertler.

The linear quadratic approach allows to handle multiple, endogenous state variables, including those arising from partially backward-looking inflation dynamics. To the best of my knowledge, this is the first explicitly optimizing analysis of disinflation strategies when policy goals are unobserved.

Price Fixing A practice whereby all competitors in an industry agree to charge the same price for their competing products. Price fixing deprives consumers of the fair market price for the products because the fixers can simply raise and lower prices at will.

Most economists (with objectivists being a major exception) believe price fixing to be anti. We are unable to fit Calvo-style contracts to inflation dynamics in any of the three economies without allowing either for ad-hoc persistence in unobservables or a significant backward-looking element.

The completed model matches inflation and output dynamics in the United States, the euro area and Japan quite well. () Indeed, empirical studies based on medium-scale DSGE models, such as those considered by Christiano, Eichenbaum, and Evans () and Smets and Wouters (), find that backward-looking elements are essential to account for the empirical dynamics.

Backward-looking terms are important in single-equation estimation as well. Edward S. Knotek II Raphael Schoenle Alexander Dietrich Keith Kuester Gernot Müller Kristian Ove R. Myrseth Michael Weber. We summarize the results from an ongoing survey that asks consumers questions related to the recent coronavirus outbreak, including their expectations for how the economy is likely to be affected by the outbreak and how their own behavior has.

On the other hand, Taylor (a, p. ) conceded that rational expectations models with staggered nominal contracts "need some bolstering of their microeconomic foundations"; he also described the aforementioned stabilization goal as the "assumed goal" (, p. ), not necessarily the model-implied goal.

Revitalizing the Jamaican Economy: Policies for Sustained Growth aims to improve our understanding of the constraints to social and economic development in. Such an oscillatory response is common to dynamic models with backward-looking dynamics.

For example, a simple dynamic model of output with two lags can exhibit a hump-shaped response with subsequent overshooting with a coefficient above unity on the first lag and a large enough negative coefficient on the second by: Orthodox stabilization plans in the member countries of the Organization for Economic Cooperation and Development (OECD)—such as the Reagan and Thatcher plans in the early s—have had significant negative distributive and welfare oyment and real wage reductions caused by the Phillips curve trade-off between inflation and the level of.

Obviously, we got some comments for Q2, but that is somewhat backward-looking. I think you had a sort of -- one of the large players in the U.S. talk about 15% to 20% declines in orders in April. ADVANCED MACROECONOMICS Fourth Edition David Romer University of California, Berkeley iii Romer rom˙fm˙i-xx Febru iv ADVANCED MACROECONOMICS, FOURTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., c by Avenue of the Americas, New York, NY, Fourteenth Edition ADVANCED MACROECONOMICS Fourth Edition David Romer University of California, Berkeley iii Romer rom˙fm˙i-xx Febru iv ADVANCED MACROECONOMICS, FOURTH Library of Congress Cataloging-in-Publication Data.

Modeling and Forecasting. Forward-Looking Versus Backward-Looking Taylor Rules. (SMVAM) is a reasonable approximation of the relationship between market and book equity for firms with positive balance sheets. Read More. Learning, Rationality, the Stability of Equilibrium and Macroeconomics.

Mozambique is an economic success story in sub-Saharan Africa (SSA). Its remarkable achievements offer valuable lessons to other low-income countries in a post-stabilization economic phase, including how they can efficiently manage a scaling up of foreign aid aimed at poverty reduction.

Of special interest to other sub-Saharan countries are the book's. You can write a book review and share your experiences. Other readers will always be interested in your opinion of the books you've read.

Whether you've loved the book or not, if you give your honest and detailed thoughts then people will find new. We conduct research to support policymaking and thought leadership on issues important to the Federal Reserve and the Fifth District.

We also inform the public through our data and economic analysis, publications, presentations and educational resources. In an obvious sense such expectations are backward-looking, since the expectation can be calculated using data on what has happened already.

Backward-looking expectations are overly naïve. People do look ahead to the future and assess future possibilities rather than just blindly reacting to what has happened before/5.Macroeconomic theory has its origins in the study of business cycles and monetary theory.

In general, early theorists believed monetary factors could not affect real factors such as real output. John Maynard Keynes attacked some of these "classical" theories and produced a general theory that described the whole economy in terms of aggregates rather than individual.