Monetary policy and core inflation

This paper studies optimal monetary policy responses in an economy featuring sectorial heterogeneity in the frequency of price adjustments. It shows that a central bank facing heterogeneous nominal rigidities is more likely to behave less aggressively than in a fully sticky economy. Hence, the supposedly excessive caution in the conduct of monetary policy shown by central banks could be partly explained by the existence of a relevant sectorial dispersion in the frequency of price adjustments. JEL Classification: E43, E52, E58core inflation, elasticity of intertemporal substitution, heterogeneity, nominal rigidity

The Impacts of Political Policies, Criminality, and Money on the Criminal Justice System in the United States

As Convict Criminologists we draw upon our experiential knowledge as prisoners held within the American criminal justice system. That experience provides us with a substantial emersion within the material conditions of life within prison as politics, criminality, and the impact of money substantially altered the criminal justice system in the USA that surrounded and controlled our lives. Combined, our experience goes back to the 1970s as convicts, then up to the present as academic faculty and researchers. We review what we believe is the best evidence that explains the inter-relationships between policies (political), criminality and money, and their age-old dance with race, class, and ethnicity in the United States. We first provide a general introduction outlining our research, followed by the historical overview of core policy changes that led to the vast expansion of corrections and their social impacts. Then we take a closer look at research examining intersections of race, money, and politics in USA on drug and crime polices. Conclusions follow

The Feldstein-Horioka fact

This paper shows that general equilibrium effects can partly rationalize the high correlation between saving and investment rates observed in OECD countries. We find that once controlling for general equilibrium effects the saving-retention coefficient remains high in the 70’s but decreases considerably since the 80’s, consistently with the increased capital mobility in OECD countries. JEL Classification: C23, F32, F41Capital Mobility, Dynamic Factor Model, International Comovement, Saving-Investment Correlation

Monetary policy in exceptional times

This paper describes the response of three central banks to the 2007-09 financial crisis: the European Central Bank, the Federal Reserve and the Bank of England. In particular, the paper discusses the design, implementation and impact of so-called "non-standard" monetary policy measures focusing on those introduced in the euro area in the aftermath of the failure of Lehman Brothers in September 2008. Having established the impact of these measures on various observable money market spreads, we propose an empirical exercise intended to quantify the macroeconomic impact of non-standard monetary policy measures insofar as it has been transmitted via these spreads. The results suggest that non-standard measures have played a quantitatively significant role in stabilising the financial sector and economy after the collapse of Lehman Bros., even if insufficient to avoid a significant fall in economic and financial activity. JEL Classification: E52, E58financial crisis, Non-standard monetary policy

Explaining the Great Moderation: it is not the shocks

This paper shows that the explanation of the decline in the volatility of GDP growth since the mid-eighties is not the decline in the volatility of exogenous shocks but rather a change in their propagation mechanism. JEL Classification: E32, E37, C32, C53Great Moderation, Information, shocks

Business cycles in the euro area

This paper shows that the EMU has not affected historical characteristics of member countries’ business cycles and their cross-correlations. Member countries which had similar levels of GDP per-capita in the seventies have also experienced similar business cycles since then and no significant change associated with the EMU can be detected. For the other countries, volatility has been historically higher and this has not changed in the last ten years. We also find that the aggregate euro area per-capita GDP growth since 1999 has been lower than what could have been predicted on the basis of historical experience and US observed developments. The gap between US and euro area GDP per capita level has been 30% on average since 1970 and there is no sign of catching up or of further widening. JEL Classification: E32, E33, C5, F2, F43.euro area, European Integration, European Monetary Union, international business cycle

Convict Criminology and the Struggle for Inclusion

Convict Criminology (CC) began in the early 1990s as a reaction to the then current state of academic criminology that did not adequately reflect the voices of convicted felons. Since its beginnings, CC has attempted to draw attention to a range of problems created by the criminal justice apparatus and defenders of the status quo. Dr. Joanne Belknap’s 2014 ASC presidential address and subsequent article presented an argument that stressed the importance of activism to be considered as part of criminological research. In the process, she reviewed her career and then criticized the field of Critical Criminology, in particular Convict Criminology. The article, however, ignored the numerous efforts that CC has engaged in to build an inclusive group school, movement, organization and network that includes the diverse voices of Ph.D. educated convicts and excons, and overall reflected a superficial understanding of the history and intent of Convict Criminology. This article attempts to explain the shortcomings of Belknap’s article and clarifies misunderstandings

Non-standard monetary policy measures and monetary developments

Standard accounts of the Great Depression attribute an important causal role to monetary policy errors in accounting for the catastrophic collapse in economic activity observed in the early 1930s. While views vary on the relative importance of money versus credit contraction in the propagation of this policy error to the wider economy and ultimately price developments, a broad consensus exists in the economics profession around the view that the collapse in financial intermediation was a crucial intermediary step. What lessons have monetary policy makers taken from this episode? And how have they informed the conduct of monetary policy by leading central banks in recent times? This paper sets out to address these questions, in the context of the financial crisis of 2008-09 and with application to the euro area. It concludes that the Eurosystem’s non-standard monetary policy measures have supported monetary policy transmission and avoided the calamity of the 1930s. JEL Classification: E5, E4, E32Great Recession, monetary policy shocks, money and credit, Non-standard monetary policy

Monetary policy and core inflation

This paper studies optimal monetary policy responses in an economy featuring sectorial heterogeneity in the frequency of price adjustments. It shows that a central bank facing heterogeneous nominal rigidities is more likely to behave less aggressively than in a fully sticky economy. Hence, the supposedly excessive caution in the conduct of monetary policy shown by central banks could be partly explained by the existence of a relevant sectorial dispersion in the frequency of price adjustments. --core inflation,elasticity of intertemporal substitution,heterogeneity,nominal rigidity