There seems to be a lot of debate in the blogosphere about how to evaluate whether monetary policy is too tight. Specifically, Arnold Kling notes: According to Sumner, we know that the Fed tightened ...

Financial markets play an important role in generating monetary policy transmission asymmetries in the US. Credit spreads only adjust to unexpected increases in interest rates, causing output and ...

How could debt problems in Greece – a country of 11 million – trigger a financial crisis not only across Europe but for the world as a whole? Although the current crisis is more pronounced than ...

In this paper, we argue that inflation targeting could be the future of Tunisia’s monetary policy. Monetary targeting has proven to be ineffective due to the composition of reserve money, structural ...

This paper provides estimates of the government spending multiplier over the monetary policy cycle. We identify government spending shocks as forecast errors of the growth rate of government spending ...