financial markets and the macroeconomy

Description The purpose of this paper is to provide a different context for considering issues of financial stability and instability, with reference to economic growth and price stability in particular Journal of Financial Economic Policy Financial and economic stability as ‘two sides of a...

Description This paper aims to shed new light on the inability of credit rating agencies (CRAs) to forecast the recent defaults and so-called quasi-defaults of rich countries. It also describes how Moody’s sovereign rating methodology has been modified – and could be further improved – to solve...

Description The purpose of this study is to contrast the discount and the Fed funds rates since 1990 and the variables that influence these rates. On the basis of quarterly data, since 1990, the primary determinants of the two policy rates are: the rate of inflation, the unemployment rate and...

Description The purpose of the paper is to improve policy, and also to simplify theory and policy. Design/methodology/approach – Theory is used in a simple and yet powerful way. Stylized facts are used. This paper reconsiders the prevailing macroeconomic policy regime, and proposes an...