THE ECONOMY AND POLICY TRADE-OFFS

Monetary Policy Trade-offs in the Open Economy

Recent work on monetary policy has focused on the trade-off between output volatility and inflation volatility. This literature is based largely on models of closed economies. Three conclusions about optimal policy characterize these models. First, the central bank faces an inflation-output gap volatility trade-off only in the presence of cost-push shocks. Second, aggregate demand shocks should...

The Political Economy of Trade Policy: A Short Survey

Monetary Policy Trade-o¤s in the Open Economy

Recent work on monetary policy has focused on the trade-o¤ between output volatility and in‡ation volatility. This literature is based largely on models of closed economies. Three conclusions about optimal policy characterize these models. First, the central bank faces an in‡ation-output gap volatility trade-o¤ only in the presence of cost-push shocks. Second, aggregate demand shocks should be ...

Economy-wide dimensions of trade policy and reform

Trade-offs

23. Stent, G.S. (1972). Prematurity and uniqueness in scientific discovery. Sci. Am. 227, 84–93. 24. Mirsky, A.E., and Pollister, A.W. (1946). Chromosin, a desoyribose nucleoprotein complex of the cell nucleus. J. Gen. Physiol. 30, 117–148. 25. Boivin, A. (1947). Directed mutation in colon bacilli, by an inducing principle of desoxyribonucleic nature: Its meaning for the general biochemistry of...