Capital Controls, Currency Wars, and International Cooperation
The debate over whether there’s a case for limiting capital flows has intensified recently—both in media and academic forums.
Japanese Inflation Expectations, Revisited
An important measure of success for monetary policy is a central bank’s ability to anchor inflation expectations; inflation expectations influence actual inflation and, hence, the achievement of a given inflation goal.
Does Import Competition Improve the Quality of Domestic Goods?
Firms must produce high-quality goods to be competitive in international markets, but how do they transition from producing low- to high-quality goods?
A New Approach for Identifying Demand and Supply Shocks in the Oil Market
An oil-price spike is often used as the textbook example of a supply shock. However, rapidly rising oil prices can also reflect a demand shock. Recognizing the difference is important for central bankers.
The Exchange Rate Disconnect
Why do large movements in exchange rates have small effects on international goods prices?
China’s Impact on U.S. Inflation
U.S. import prices of consumer goods shipped from China have been moderating in recent quarters, following an upward surge of 11 percent between mid-2010 and the end of 2011.
Ring‑Fencing and “Financial Protectionism” in International Banking
Some market watchers and academic researchers are concerned about a “Balkanization” of banking, owing to a sharp decline in cross-border international banking activity, and an increased home bias of financial transactions.
The Different Paths of Greece and Spain to High Unemployment
Euro area GDP remains below its 2007 level due to the global financial meltdown
and the subsequent sovereign debt crisis in the periphery countries.
Income Flows from U.S. Foreign Assets and Liabilities
Foreign investors placed roughly $1.0 trillion in U.S. assets in 2011, pushing the total value of their claims on the United States to $20.6 trillion.
Follow That Money! How Global Banks Manage Liquidity Globally
Banks increasingly move money around the world.