Q1. What have the authors contributed in "Aboa centre for economics" ?
This study shows that the learning by doing ( LBD ) effect has substantial, both quantitative and qualitative, consequences for the international transmission of monetary policy.
Learning by Devaluating: A Supply-Side Effect of Competitive Devaluation
Reads0
Chats0
TLDR
In this article, the learning by doing (LBD) effect has substantial, both quantitative and qualitative, consequences for the international transmission of monetary policy, and it is shown that LBD increases the harmful effect of competitive devaluation on foreign output by 85-125%.Abstract:
This study shows that the learning by doing (LBD) effect has substantial, both quantitative and qualitative, consequences for the international transmission of monetary policy. LDB implies that a country can increase its productivity-increasing skill level, at the expense of the neighbor, by competitive devaluation engineered through low interest rates. If measured by the cumulative change in output after 12 quarters, LBD increases the harmful effect of competitive devaluation on foreign output by 85–125%, when compared to the case without it. If LBD is sufficiently strong and the cross-country substitutability is high (low), it reverses the effect of monetary policy on foreign (domestic) welfare into negative (positive). Moreover, a combination of a high cross-country substitutability and a sufficiently strong LDB effect implies that competitive devaluation increases both domestic output and welfare, at the expense of foreign output and welfare.read more
Figures
Table 6: Varying the Key Parameters: The Discounted Present Value of the Change in Utility When 6 
Table 7: The Percentage Change in the Cumulative Change in Output Compared to the Case Without LDB When 5.1 
Table 8: Varying the Key Parameters: Discounted Present Value of the Change in Utility When 5.1 
Table 2: Discounted Present Value of the Changes in Utility When 6 
Figure 1: Dynamic Effects of a Domestic Interest Rate Shock When 6 
Figure 4: Effects of Varying Key Parameter Values When 6
Citations
More filters
Journal ArticleDOI
Hysteresis and fiscal policy
Philipp Engler,Juha Tervala +1 more
TL;DR: In this article, the authors analyzed the implications of hysteresis for fiscal policy in a DSGE model and showed that the welfare multiplier is larger in the presence of hystresis.
Journal ArticleDOI
Goods Production, Learning by Doing, and Growth in a Region with Creative and Physical Capital
TL;DR: In this article, the effects of learning by doing resulting from the production of a final good on economic growth in a region that is creative in the sense of Richard Florida are studied.
Posted Content
Banks’ leverage behaviour in a two-agent New Keynesian model
Andrea Boitani,Chiara Punzo +1 more
TL;DR: In this paper, the authors show that the level of banks leverage, which may be imposed by banks regulation, affects the steady state level of output, employment and consumption, as might be expected in a non-Modigliani-Miller world.
Journal ArticleDOI
Industry trade and exchange-rate fluctuations: Evidence from the U.S. and Chile
TL;DR: This article examined the United States' trade balance with Chile, both at the aggregate level and for 49 individual industries, and found that most effects concentrated among certain manufactures, with agricultural products and raw materials responding less to currency movements than do other commodities.
Journal ArticleDOI
Hysteresis and the welfare costs of recessions
TL;DR: This article showed that the welfare costs of recessions are huge (negligible) in the New Keynesian model with (without) hysteresis and showed that an empirically observed degree of hystresis increases the welfare cost of a recession by a factor of 121.
References
More filters
Journal ArticleDOI
International Welfare Effects of Monetary Policy
TL;DR: In this paper, the authors examined the international welfare effects of monetary policy and developed a New Keynesian two-country model, where central banks in both countries follow the Taylor rule, showing that a decrease in the domestic interest rate, under producer currency pricing, is a beggar-thyself policy that reduces domestic welfare and increases foreign welfare in the short term, regardless of whether the cross-country substitutability is high or low.
Journal ArticleDOI
The International Transmission of Monetary Policy in a Dollar Pricing Model
TL;DR: The authors analyzed the international transmission of monetary policy in a case where all export prices are set in US dollars and concluded that under dollar pricing monetary expansion is a beggar-thy-neighbour policy.