Does theory aid inflation forecasting? To address this question, we develop a novel
forecasting procedure based upon a New Keynesian Phillips Curve that incorporates time …

This study examines the effect of real money balances on monetary policy in a two-country
new Keynesian model. To accomplish this, the nonseparable utility function between …

The conventional monetary policy rule describes a simple linear relationship between the
domestic interest rate, inflation rate and output gap. An important extension to this rule is to …

Limited asset market participation (LAMP) and trade openness are crucial features that
characterize all real-world economies. We study equilibrium determinacy and optimal …

For decades, the monetary economics literature has considered multiple deposit expansion
via the money multiplier logic as empirically corroborated. However, the developments …

This paper employs Bayesian estimation to uncover the central bank preferences of the five
Latin American inflation targeting countries with floating exchange rates: Brazil, Chile …

This study explores how the real money balance effect (RMBE) affects the neo-Fisherian
effect (NFE) in a standard new Keynesian model. First, we find that the presence of the …

This paper examines the local determinacy implications of using consumption taxes and
income taxes to finance a balanced budget fiscal policy for a variety of popular monetary …

Recent research has shown that forward-looking Taylor rules are subject to indeterminacy in
New Keynesian models with capital and investment spending. This paper shows that …

Cuando ocurrió la Crisis Mexicana de 1994, el Banco Central de México se vio obligado a
abandonar su sistema de tipo de cambio fijo. Desde entonces, la política monetaria se ha …