International transmission effects of monetary policy shocks: can asymmetric price setting explain the stylized facts?
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چکیده
منابع مشابه
International Transmission Effects of Monetary Policy Shocks: Can Asymmetric Price Setting Explain the Stylized Facts?
How does an unexpected domestic monetary expansion affect the foreign economy? Does it induce an increase or a decline in foreign production? In the traditional two-country Mundell-Fleming model, monetary policy has «beggar-thy-neighbor» effects. Yet, empirical evidence from VARs indicates that U.S. monetary policy has positive international transmission effects on both foreign (non-U.S. G-7) o...
متن کاملInternational Transmission of Monetary Policy Shocks: Can Asymmetric Price Setting Explain the Stylized Facts?
How does an unexpected domestic monetary expansion a¤ect the foreign economy: Does it induce an increase or a decline in foreign production? And is it ’beggar-thy-neighbour’, or does it raise foreign welfare? Empirical evidence from VARs indicates that monetary policy has positive international transmission e¤ects on both foreign output and aggregate demand. A two-country dynamic general equili...
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How should monetary authorities react to an oil price shock? The New Keynesian literature has concluded that ensuring complete price stability is the optimal thing to do. In contrast, this paper argues that a meaningful trade-off between stabilizing inflation and the welfare relevant output gap arises in a distorted economy once one recognizes (i) that oil (energy) cannot be easily substituted ...
متن کاملForeign Price Shocks and Monetary Policy in an Asymmetric Monetary Union
This paper analyzes the dynamic effects of anticipated and unanticipated foreign price increases of imported raw materials for a small two-country monetary union, which is simultaneously characterized by asymmetric wage adjustments and asymmetric interest rate sensitivities of private absorption. It is shown that both types of input price disturbances lead to temporary divergences in output dev...
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ژورنال
عنوان ژورنال: International Journal of Finance & Economics
سال: 2006
ISSN: 1076-9307,1099-1158
DOI: 10.1002/ijfe.293