Jordi Galí finds that the impact of forward guidance on exchange rates poses a stiff challenge for existing theoretical models.
Davide Debortoli, Jinill Kim, Jesper Lindé, and Ricardo Nunes argue that stabilizing measures of economic activity should be one of the primary objectives of central banks, in some cases even more important than stabilizing inflation.
Hugo Rodríguez shows how narrow banking could be implemented without affecting intermediation by depository institutions.
This is the second of two roundups of VoxEU articles written by Barcelona GSE researchers.
Researchers in the Barcelona GSE community have written several widely-read articles on CEPR’s policy portal, VoxEU.
The idea of financing a fiscal stimulus with money creation has long been a taboo and disregarded as a policy option. But is this justified? Jordi Galí investigates the effects of a government engaging in just such a stimulus as compared with a debt-financed stimulus.