New Open Economy Macroeconomics
نویسنده
چکیده
Starting in the early 1990s, the New Open Economy Macroeconomics refers to a vast body of literature embracing a new theoretical framework for policy analysis in open economy, with the goal of overcoming the limitations of the Mundell-Fleming model, while preserving the empirical wisdom and policy friendliness of traditional analysis. Building general equilibrium models with imperfect competition and nominal rigidities, the NOEM literature has reconsidered conventional views on the transmission of monetary and exchange rate shocks; it has contributed to the design of optimal stabilization policies, identifying international dimensions of optimal monetary policy and raising issues in the desirability of international policy coordination.
منابع مشابه
Home Bias in Equities under New Open Economy Macroeconomics
This paper presents a potential solution to the home bias puzzle based on a new open economy macroeconomics model. In response to technology shocks, sticky prices generate a negative correlation between labor income and the profits of domestic firms, leading to home bias in equity holdings. In contrast, under flexible prices, labor income and the profits of the domestic firms are positively cor...
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