abstract in this paper, the effect of foreign sector macro-variable on inflation dynamics and firms’ pricing behavior has been investigated in the context of a small open economy new keynesian phillips curve. this curve is derived and estimated for a developing oil-exporting economy suffering from dutch disease. this version of nkpc is an extension of leith and malley’s (2007) small open econom...

The theory of capital investment is the cornerstone of the theory of macroeconomic dynamics, and the question of whether or not the agents involved in the investment decision have the information needed to make individually and collectively optimal choices is central to capital accumulation theory. New Classical and neoclassical theory assume that they do. Keynesian and Post Keynesian theory as...

This appendix contains additional literature review and many extensions left out of the text for reasons of space. Sections A and B critically review more of the literature on identification and determinacy in new-Keynesian and related models. If you want to know " what about x's approach to these issues? " you are likely to find an answer here. In particular, Section A.1 reviews the learnabili...

Forward guidance is widely considered a useful tool for improving monetary policy transmission. This paper introduces endogenous Delphic in which future targets are time-varying and dependent on the economy. The results show that performance of inflation-targeting forward depends partially horizon agents’ expectation, while announcing an interim output target could stimulate economy only under ...