Monetary policy for an open economy: an alternative framework with optimizing agents and sticky prices
نویسندگان
چکیده
منابع مشابه
Asset Prices, Liquidity, and Monetary Policy in an Exchange Economy
I formulate a search-based asset-pricing model where equity shares and fiat money can be used as means of payment. I characterize a family of optimal stochastic monetary policies. Every policy in this family implements Friedman’s prescription of zero nominal interest rates. Under an optimal policy, equity prices and returns are independent of monetary considerations. I also study a perturbation...
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The steep increases in unemployment associated with the financial crisis and global recession of 2008–2009, and the widespread focus on unemployment in both the popular press and in policy debates, is in sharp contrast to the canonical new Keynesian model in which unemployment is noticeably absent. In that model, workers are never unemployed, and only hours worked per worker vary over the busin...
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In Krawczyk and Kim (Macroeconomics, 2009), we studied the problem of setting monetary policy in a closed economy using viability theory. Policies derived from the application of viability theory are ‘good enough’, rather than ‘optimal’. In this paper, we extend the analysis to a small open-economy model where the exchange rate becomes an additional channel for the transmission of monetary poli...
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ژورنال
عنوان ژورنال: Oxford Review of Economic Policy
سال: 2000
ISSN: 1460-2121
DOI: 10.1093/oxrep/16.4.74