January 9, 2009 - Chapter
After liberalizing international transaction of financial assets, many countries experience large swings in asset prices, capital flows, and aggregate production. This chapter studies how the adjustment to capital account liberalization depends upon the degree of development of a domestic financial...
September 14, 2006 - Chapter
The paper evaluates the performance of three popular monetary policy rules when the central bank is learning about the parameter values of a simple New Keynesian model. The three policies are: (1) the optimal non-inertial rule; (2) the optimal history-dependent rule; (3) the optimal price-level...