The Source of Real and Nominal Exchange Rate Fluctuations in Thailand: Real Shock or Nominal Shock

Real Balance Effects When the Nominal Interest Rate is Zero

What are the economic effects of a large increase in real balances of money on the economy when the nominal interest is zero? This paper considers this question using a computable overlapping generations model. In this model increases in money supply that increase the overall stock of government debt have real effects. Results from a dynamic simulation analysis indicate that monetary policies s...

Nominal versus Real Board Independence

In this paper, we investigate whether a regulation that mandates a greater proportion of outside directors on a corporate board results in a more independent board. Instead of taking the fraction of outside directors directly as the measure of board independence, we define it as the nominal independence level. The real independence level of the board is determined by both the nominal independen...

Stylized Facts of Nominal Exchange Rate Returns

The survey of Impact of Oil Price Fluctuations on Real Exchange Rate in the Selected OPEC Countries

One of the most significant discussion and challenges propounded in the macroeconomics is the effects of fluctuations of exchange rate on the macroeconomic variables (production, employment, inflation and … etc).In this direction, the important and noticeable point is the factors which lead to fluctuations in the exchange rate which, from amongst these factors as an example, is fluctuations in ...

Nominal rigidities and the dynamic effects of a monetary shock

Two dynamic sticky price models with monopolistic competition in the goods market are presented. In the first model, each intermediate goods producer faces quadratic costs of adjusting its nominal price as introduced by Rotemberg (1982); the second model incorporates staggered price setting as proposed by Taylor (1980) and recently discussed by Chari/Kehoe/McGrattan (2000). Using the approximat...