Yen and Yang: The Response of the Nikkei to the Yen
To what extent are Japanese equities driven by changes in the value of the yen?
Capital Flight inside the Euro Area: Cooling Off a Fire Sale
Matthew Higgins and Thomas Klitgaard Countries in the euro area periphery such as Greece, Italy, Portugal, and Spain saw large-scale capital flight in 2011 and the first half of 2012. While events unfolded much like a balance of payments crisis, the contraction in domestic credit was less severe than would ordinarily be caused by capital […]
Foreign Borrowing in the Euro Area Periphery: The End Is Near
Current account deficits in euro area periphery countries have now largely disappeared.
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.
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