全球智库信息集成服务系统(G2TT): DP6579 Government Risk Premiums in the Bond Market: EMU and Canada

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP6579
	DP6579 Government Risk Premiums in the Bond Market: EMU and Canada
	Jurgen von Hagen; Ludger Schuknecht; Guido Wolswijk
发表日期	2007-11-23
出版年	2007
语种	英语
摘要	We analyze the policy trade-offs generated by local currency price stability of imports in economies where upstream producers strategically interact with downstream firms selling the final goods to consumers. We study the effects of staggered price setting at the downstream level on the optimal price (and markup) chosen by upstream producers and show that downstream price movements affect the desired markup of upstream producers, magnifying their price response to shocks. We revisit the international dimensions of optimal monetary policy, unveiling an argument in favour of consumer price stability as the main prescription for monetary policy. Since stable consumer prices feed back into a low volatility of markups among upstream producers, this contains inefficient deviations from the law of one price at the border. However, efficient stabilization of different CPI components will not generally result into perfect stabilization of headline inflation. National policies optimally respond to the same shocks in a similar way, thus containing volatility of the terms of trade, but not necessarily of the real exchange rate. The latter will be more volatile, among other things, the larger the home bias in expenditure and the content of local inputs in consumer goods.
主题	International Macroeconomics
关键词	Exchange rate pass-through Optimal monetary policy Price discrimination Price dispersion Real exchange rates
URL	https://cepr.org/publications/dp6579
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/535418
推荐引用方式 GB/T 7714	Jurgen von Hagen,Ludger Schuknecht,Guido Wolswijk. DP6579 Government Risk Premiums in the Bond Market: EMU and Canada. 2007.