P olicy makers in housing sector seeks to use instruments by which they can control volatility of housing price and prevent high disturbances of the bubble and price shocks, or at least, reduce them. In the portfolio and speculation theories, it is emphasized that speculative demand for housing is the main cause of shocks and price volatilities in the sector. The theory of housing price bu...

This paper explores time variation in the dynamic effects of technology shocks on U.S. output, prices, interest rates as well as real and nominal wages. The results indicate considerable time variation in U.S. wage dynamics that can be linked to the monetary policy regime. Before and after the "Great Inflation", nominal wages moved in the same direction as the (required) adjustment of real wage...

In contrast to industrialized countries, emerging market economies are characterized by proor acyclical monetary policies and high output volatility. This paper argues that those facts can be related to a long-run feature of the economy – namely, its institutional quality (IQL). The paper presents evidence that supports the link between an index of IQL (law and order, government stability, inve...

This paper aims to optimize the Central Bank transparency level which corresponds to the minimum of output volatility in 28 states of the Organization of Islamic Cooperation (due to the maximum data availability) during the period 2003-2014. For this purpose, the Dincer-Eichengreen index is used, which includes five aspects covering political, economic, procedural, policy, and operational trans...

We assume that firms actively manage risk by learning and hedging in two macroeconomic models, a simple cobweb model and a model of monopolistic competition that allows for the analysis of monetary policy and welfare. In both models, firms that learn (by paying a cost to observe the model’s stochastic shocks) face less uncertainty and produce more output than firms that hedge. Parameter or poli...

This paper empirically studies the effect of remittances on growth volatility. Using a panel of 60 countries over the period 1980-2004 the results suggest that remittances reduce growth volatility in environment with low level of financial development. This stabilizing effect of remittances is nonlinear i.e. it decreases with the level of remittances. The results also suggest that the dampening...