Destabilizing Balance Sheet Effects in the New Consensus Model
Fil: Libman, Emiliano. CEDES. Centro de Estudio de Estado y Sociedad. Área de Economía. Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET); Argentina.
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2021
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| Acceso en línea: | http://repositorio.cedes.org/handle/123456789/4594 https://link.springer.com/article/10.1057/s41302-019-00146-3#rightslink |
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I61-R167-123456789-45942023-08-11T18:28:22Z Destabilizing Balance Sheet Effects in the New Consensus Model Libman, Emiliano Economía Fil: Libman, Emiliano. CEDES. Centro de Estudio de Estado y Sociedad. Área de Economía. Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET); Argentina. This paper proposes a simple modification of an otherwise standard New Consensus open economy model. We include an endogenous risk premium to show that a Taylor Rule that satisfies the Taylor Principle may lead to instability if exchange rate depreciations worsen the balance sheet of firms, exerting a negative effect on output and employment. Thus, the adoption of Inflation Targeting and a flexible exchange rate regime introduces destabilizing forces in economies that are exposed to liability dollarization, and this helps to rationalize central bank interventions in the foreign exchange market to avoid large exchange rate fluctuations. 2021-02-16T05:36:48Z 2021-02-16T05:36:48Z 2019-08-12 info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/article info:ar-repo/semantics/artículo Libman E. Destabilizing Balance Sheet Effects in the New Consensus Model. Eastern Econ J. 2019;45:590–611. Disponible en: http://repositorio.cedes.org/handle/123456789/4594. http://repositorio.cedes.org/handle/123456789/4594 10.1057/s41302-019-00146-3 https://link.springer.com/article/10.1057/s41302-019-00146-3#rightslink eng info:eu-repo/semantics/closedAccess application/pdf Eastern Econ J. 2019;45:590–611. |
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Centro de Estudios de Estado y Sociedad (CEDES) |
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I-61 |
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R-167 |
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Respositorio Digital CRIS del CEDES - Centro de Estudios de Estado y Sociedad |
| language |
Inglés |
| topic |
Economía |
| spellingShingle |
Economía Libman, Emiliano Destabilizing Balance Sheet Effects in the New Consensus Model |
| topic_facet |
Economía |
| description |
Fil: Libman, Emiliano. CEDES. Centro de Estudio de Estado y Sociedad. Área de Economía. Consejo Nacional de Investigaciones Científicas y Técnicas (CONICET); Argentina. |
| format |
publishedVersion Artículo Artículo |
| author |
Libman, Emiliano |
| author_facet |
Libman, Emiliano |
| author_sort |
Libman, Emiliano |
| title |
Destabilizing Balance Sheet Effects in the New Consensus Model |
| title_short |
Destabilizing Balance Sheet Effects in the New Consensus Model |
| title_full |
Destabilizing Balance Sheet Effects in the New Consensus Model |
| title_fullStr |
Destabilizing Balance Sheet Effects in the New Consensus Model |
| title_full_unstemmed |
Destabilizing Balance Sheet Effects in the New Consensus Model |
| title_sort |
destabilizing balance sheet effects in the new consensus model |
| publishDate |
2021 |
| url |
http://repositorio.cedes.org/handle/123456789/4594 https://link.springer.com/article/10.1057/s41302-019-00146-3#rightslink |
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AT libmanemiliano destabilizingbalancesheeteffectsinthenewconsensusmodel |
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