Today many argue that there appears to be an epidemic case of “fear of floating”. Some have further claimed that credible inflation targeting – a popular regime choice today – and fear of floating are identical regimes. This paper takes a different view. We modify Calvo and Reinhart’s (2002) approach to analyze the behavior of exchange rates, reserves, interest rates and inflation across 88 exc...

Using a Markov-switching Bayesian likelihood approach, the paper proposes a new measure of the degree of credibility of the Federal Reserve. We estimate a medium-scale macroeconomic model, where the central bank has access to a commitment technology, but where a regime-switching process governs occasional re-optimizations of announced plans. The framework nests the commonly used discretion and ...

This paper follows up on recent studies of the Eurozone interest rate pass-through. Using a generalized empirical approach that allows for a variety of different specifications of the pass-through, including asymmetric adjustment, the role of interest rate expectations, proxied by EURIBOR futures, in determining retail banking product pricing is explored. It is shown that the pass-through is fa...

e xchange rate is an important factor influencing price indices of exported goods of a country in different ways. imported intermediate commodity is one of the important ways by which the change in exchange rate affects price indices of the exported goods. using the input-output table of iran for the year 2001, this paper investigates the impact of exchange rate devaluation on price indices of ...

Este paper tem como objetivo descrever, segundo a Escola Austríaca de Economia, as políticas monetárias adotadas pelo Federal Reserve partir 2008 (Quantitative Easing – QE, Qualitative QL e Zero Percent Interest Rate Policy ZIRP) prolongaram os desajustes na alocação recursos, enfraqueceram economia americana (indivíduos empresas tornaram-se mais dependentes juros artificialmente baixos) aument...

the paper examines for the first time the foreign exchange intervention policy in foreign exchange market of iran. and in this framework, the study designs and simulates the foreign exchange intervention model in iran. in the first section, the paper shows that the injection of oil revenues directly to economy and also the absence of potent structure of output are inclusively caused the central...

in this paper we have utilized optimum control procedures to derive an optimum monetary rule for iran’s economy ; assuming the policy makers are using the interest rate as a policy variable. in doing so a dynamic stochastic model with rational expectation was setup. the model is calibrated with the use of previous findings in the literature. the results show that the optimum reacrion of the pol...

Dishevelled (Dsh) is a key signaling molecule in the canonical Wnt pathway. Although the mechanism by which Dsh transduces a Wnt signal remains elusive, the subcellular localization of Dsh may be critical for its function. In the early sea urchin embryo, Dsh is concentrated in punctate structures within the cytoplasm of vegetal blastomeres. In these cells, Dsh stabilizes beta-catenin and causes...