Development of a model for analyzing how a monetary authority should respond to tariffs on imports. In the model, the optimal policy is expansionary, from @javierbianchi7 and @LouphouC https://t.co/P2LdaNhIFB
Financial integration can lead to under-tightening or over-tightening of monetary policy in the Nash equilibrium, from @javierbianchi7 and @LouphouC https://t.co/wA88yDadn3
A theory of fear of floating, the ubiquitous policy of stabilizing exchange rates, in contrast to the classic Mundell Flemming paradigm that calls for a floating exchange rate regime, from @JavierBianchi7 and @LouphouC https://t.co/WfZHU3kzMd
Macroprudential policy has become a new pillar of the macro toolkit. But how should it be integrated with the traditional macro policies and what are the implications for global welfare?
Brief thread🧵on joint work with Louphou Coulibaly @LouphouC