The small open economy with two commodities
Monetary policy rules in a two-sector small open economy
... Intuitively, in the first case consumption and real balances are “complemen- tary” goods, so their rate of growth changes in the same direction in the optimum. In the second case they are “substitutes”, so the two ...
35
Fiscal Policy in a Two-Sector Model of a Small Open Economy
... a small open economy under a flexible exchange rate ...tractable two-sector model that offers simple and intuitive predictions on how fiscal policy affects the economy, and how the ...
33
Welfare-Based Optimal Monetary Policy in a Two-Sector Small Open Economy
... The open economy formulation brings an additional, cross-country, dimension into the problem described ...an open economy the policymaker can manipulate the terms of trade in order to increase ...
54
Saving and investment in a two-sector model of endogenous growth of a small open economy
... The economy, in this paper, consists of an export and import ...has two key features on the production ...of two sectors, and of endogenous ...
28
Growth and Inequality in a Small Open Economy
... 5.2 Positive adjustment costs The three examples above demonstrate that the growth-inequality tradeoff – whether positive, negative, or unrelated – depends crucially on the sources of the shocks and channels of ...
37
Credit Crunch in a Small Open Economy
... of small open economies decreased demand for exports and limited access to external funding further contributed to the slowdown 1 ...world economy entered its worst recession since World War ...
52
Inflation Targeting in a Small Open Economy
... The implications of inflation targeting in a small open economy are not as clear as in the case of a closed economy. For example, consider a shock that causes a persistent depreciation of the ...
45
Public Investment in a Small Open Economy
... Tilburg University & CentER ABSTRACT We study the effects of public investment in a dynamic overlapping-generations model of a small open economy. Boosting public investment stimulates private ...
35
Financial Liberalization in a Small Open Economy
... This paper provides a conceptual framework for analyzing the macroeconomic implica- tions of financial liberalization in a small, open, real economy. As financial liberalization is a ...
33
Credit Crunch in a Small Open Economy
... of small open economies decreased demand for exports and limited access to external funding further contributed to the slowdown 1 ...world economy entered its worst recession since World War ...
46
Equity Premiums In a Small Open Economy
... Nevertheless, Rouwenhorst (1995) explains that in a closed economy, consumption smoothing must arise through capital accumulation. Thus, it is dif cult to explain substantial risk premia because agents smooth ...
41
Equity Premiums In Small Open Economy
... 1 Introduction The literature on the behavior of asset prices in relation to consumption and other business cycle variables is relatively thin in the past years following the Mehra and Prescott (1985) seminal paper. ...
21
Equity Premiums In a Small Open Economy
... foreign economy is ...a small open economy, with habit persistence in preferences and adjustment costs of capital, the case we intend to assess ...
41
Ageing and Growth in the Small Open Economy
... The objective of this paper is to investigate the effects on the economic growth perfor- mance of a small open economy of substantial demographic shocks of the type and magnitude mentioned above. We ...
41
Nominal growth of a small open economy
... It is also important to look at the time series behavior of these statistics. We use three countries as illustrations: two early catching-up countries, Spain and Portugal, plus Hungary (Figure 4). Spain exhibited ...
34
Forward Guidance in Small Open Economy
... In open economy movements in the exchange rate have two competing ...the two effects is stronger. However, in the case analyzed here, the two effects offset and the exchange rate ...
36
Closing Small Open Economy Models
... the small open economy real business cycle model stationary: two versions of an endogenous discount factor, a debt-contingent interest rate premium, portfolio adjustment costs, and complete ...
21
Does the utility function form matter for indeterminacy in a two sector small open economy?
... 1. INTRODUCTION It is well understood by now that under certain market imperfection conditions models of business cycle can be subject to indeterminacy. Inde- terminacy means that from the same initial condition there ...
12
Permanent vs Temporary Fiscal Expansion in a Two-Sector Small Open Economy Model
... a two-sector small open economy model inhabiting by infinitely-living agents, having time separable preferences and facing perfect international capital markets? The zero-root property ...
74
Output, Employment and Wages in a Small Open Economy
... If this implication seems to clash with experience of small open economies, it is worth noting, however, that in a dynamic, Harrod-Domar, version of such a model, the balance of trade de[r] ...
26