Article citationsMore>>

R. J. Caballero, “Macroeconomics after the Crisis: Time to Deal with the Pretense-of-Knowlegde Syndrome,” Journal of Economic Perspectives, Vol. 24, No. 4, 2010, pp. 85-102. doi:10.1257/jep.24.4.85

has been cited by the following article:

• TITLE: An Extended Model of Currency Options Applicable as Policy Tool for Central Banks with Inflation Targeting and Dollarized Economies

  AUTHORS: Luis-Felipe Arizmendi

  KEYWORDS: Inflation Targeting; Central Bank Policies; Exchange Rates; Currency Options

  JOURNAL NAME: Theoretical Economics Letters, Vol.3 No.3, June 7, 2013

  ABSTRACT: The purpose of this paper is to provide a new set of tools for policy makers at central banks. Based on the Garman-Kohlhagen [1] formula for currency options, this research extends it with the Taylor-rule expression used for inflation targeting, thus obtaining the corresponding Call and Put options and the first and higher-degree partial derivatives known as “Greeks” for key variables such as the policy target domestic interest rate and the output gap.