Olivier Jeanne
Johns Hopkins University, Economics, Faculty Member
Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter
Sundaresan and Jeromin Zettelmeyer for their comments. The views expressed herein are those of the
We present a general framework for thinking about symbolic values in economic settings. Our theory enables one to think about the value systems that are consistent with a given resource allocation, and the resource allocations that can be... more
We present a general framework for thinking about symbolic values in economic settings. Our theory enables one to think about the value systems that are consistent with a given resource allocation, and the resource allocations that can be supported by a given value system. Thus, it naturally leads to the notion of a "socio-economic equilibrium", the e ¢ ciency properties of which can be studied using the standard tools of economic analysis. In order to illustrate the potential of our theoretical framework for helping understanding key economic issues, we develop simple models in which people attach a symbolic value to occupations. The models shed some light on the transition from traditional to modern values, the emergence of tolerant societies, and the possibility of failing economic development because of a cultural trap.
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This paper presents a two-country model of the world economy with money and nominal stickiness in which countries may be affected by demand shocks. We show that a negative demand shock in one country may push the world economy in a global... more
This paper presents a two-country model of the world economy with money and nominal stickiness in which countries may be affected by demand shocks. We show that a negative demand shock in one country may push the world economy in a global liquidity trap with unemployment and zero nominal interest rates in both countries. Global monetary stimulus (a temporary increase in both countries’ inflation targets) may restore the first-best level of employment and welfare. Fiscal stimulus may restore full employment but distorts the allocation of consumption between private and public goods. We also study the international spillovers associated with each policy, and the risk that they lead to trade protectionism.
There has been a lot of interest since the global financial crisis in policies allowing emerging market economies to smooth the effects of the global financial cycle. Although the literature has focused mostly on capital controls emerging... more
There has been a lot of interest since the global financial crisis in policies allowing emerging market economies to smooth the effects of the global financial cycle. Although the literature has focused mostly on capital controls emerging market governments have relied mostly on international reserves management. This paper discusses the role of reserves in capital flow management based on a simple welfare-based model of capital flows with international banking frictions.
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The link between monetary policy and asset price movements has been of perennial interest to policy makers. The 1920s stock market boom and 1929 crash and the 1980s Japanese asset bubble are two salient examples where it is widely... more
The link between monetary policy and asset price movements has been of perennial interest to policy makers. The 1920s stock market boom and 1929 crash and the 1980s Japanese asset bubble are two salient examples where it is widely believed that monetary authorities geared their actions to the behavior of key asset prices and caused a financial disaster.
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Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign capital flows in and speeds up the process of convergence. We show in calibrated exercises that... more
Standard theoretical arguments tell us that countries with relatively little capital benefit from financial integration as foreign capital flows in and speeds up the process of convergence. We show in calibrated exercises that conventionally measured welfare gains from this type of convergence appear relatively limited for the typical emerging country. The traditional theory, then, does not seem to provide a sufficient rationale for capital account liberalization. Our approach emphasizes instead that poor countries face a number of distortions that ...
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Financial globalization is commonly viewed as a powerful force in constraining or disciplining domestic policies. This paper presents a model that captures various ways in which international capital mobility affects domestic policy... more
Financial globalization is commonly viewed as a powerful force in constraining or disciplining domestic policies. This paper presents a model that captures various ways in which international capital mobility affects domestic policy incentives. Capital mobility supports reform in two ways: 1) capital inflows enhance the benefits of good policies; 2) liberalizing capital outflows may lock in political support for reforms. On the downside, capital mobility makes possible selffulfilling capital flight that destroys the domestic ...
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Research Interests: Biology, Medicine, Humans, Animals, Male, and 6 moreSkin, Clinical Sciences, Rats, Adult, Schwann Cells, and Schwann Cell
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ABSTRACT TB
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Research Interests: Globalization and Debt
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The government debt and banking turmoil that persists in several euro area countries begs the question of why countries such as the United States or Japan, which do not have less debt, have not been affected by the same problems. To shed... more
The government debt and banking turmoil that persists in several euro area countries begs the question of why countries such as the United States or Japan, which do not have less debt, have not been affected by the same problems. To shed light on this question, two forms of monetary dominance should be distinguished. According to the first (soft, or preventive) form of monetary dominance, the government adjusts its fiscal policy so as to avoid having to choose between a default or debt monetisation. In the second case (hard form of monetary dominance), in the extreme situation where this choice has to be made, the monetary authorities let the government default rather than monetising the debt. We show that hard monetary dominance may reduce the probability of fiscal adjustment and, if it is not perfectly credible, may increase the probability of inflation.
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We consider a "continental" mixed oligopoly in which public firms maximize national surplus. In the unique Cournot- Nash equilibrium the countries with a public firm are net exporters and the price lies above the... more
We consider a "continental" mixed oligopoly in which public firms maximize national surplus. In the unique Cournot- Nash equilibrium the countries with a public firm are net exporters and the price lies above the constant marginal cost. Moreover the objective of the public firms may be expressed uniquely in terms of exports. Nationalization, privatization, and creation of a public firm may increase the continental and national welfare under some conditions on the industry structure which we explicitly determine.
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Abstract Defending a government’s exchange-rate commitment,with active interest rate policy is not an option in the well-known Krugman-Flood-Garber (KFG) model of speculative attacks. In that model, the interest rate is the passive... more
Abstract Defending a government’s exchange-rate commitment,with active interest rate policy is not an option in the well-known Krugman-Flood-Garber (KFG) model of speculative attacks. In that model, the interest rate is the passive reflection of currency-depreciation expectations. In this paper we show how to adapt the KFG model to allow for an interest rate defense. It is shown,that increasing domestic-currency interest
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Page 1. Peterson Institute for International Economics Olivier Jeanne, Arvind Subramanian, and John Williamson WHO NEEDS TO OPEN THE CAPITAL ACCOUNT? Page 2. WHO NEEDS TO OPEN THE CAPITAL ACCOUNT? ACCOUNT? ...
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... crédit domestique suit un processus stochastique markovien : le crédit domestique anticipé est alors entièrement déterminé par le crédit domestique courant, qui constitue l'unique fondamental (Dornbusch, 1987 ; Flood et... more
... crédit domestique suit un processus stochastique markovien : le crédit domestique anticipé est alors entièrement déterminé par le crédit domestique courant, qui constitue l'unique fondamental (Dornbusch, 1987 ; Flood et Garber, 1984a ... <D' > oc log (1+J):ilya seul équilibre ...
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The paper starts from the premise that the debate on the 'new architecture' of the international financial system should be based on a theory ... I study, in the context of this model, the welfare effects of an international... more
The paper starts from the premise that the debate on the 'new architecture' of the international financial system should be based on a theory ... I study, in the context of this model, the welfare effects of an international lender of last resort, measures aimed at coordinating creditors in ...
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We present a general framework,for thinking about symbolic,values in economic,set- tings. Our theory enables one to think about the value systems,that are consistent with a given resource allocation, and the resource allocations that can... more
We present a general framework,for thinking about symbolic,values in economic,set- tings. Our theory enables one to think about the value systems,that are consistent with a given resource allocation, and the resource allocations that can be supported by a given value system. Thus, it naturally leads to the notion of a "socio-economic equilibrium", the e¢ ciency properties of which can