We analyze optimal policy in a simple small open economy model with price setting frictions. In particular, we study the optimal response of the nominal exchange rate following a terms of trade shock. We depart from the New Keynesian literature in that we explicitly model internationally traded commodities as intermediate inputs in the production of local final goods and assume that the small o...

Background & Objectives: Knowledge-based economy is one of the major parts of the resistance economy and is recognized as the essentials of the information technology age. As one of the most important educational units and the custodian of community health, universities of medical sciences play a pivotal role in the success of resistance economy based on the knowledge-based economy. Among the e...