Matches in SemOpenAlex for { <https://semopenalex.org/work/W3125859095> ?p ?o ?g. }
Showing items 1 to 65 of
65
with 100 items per page.
- W3125859095 abstract "This paper studies the optimal choice of exchange rate regimes between two large currency areas. It provides a positive and normative analysis of alternative monetary policy rules in a model with sticky prices, monopolistic competition, and frictions in the processes of capital accumulation and acquisition of external finance. The stabilization and welfare analysis provides a sound result on the desirability of monetary policy and exchange rate flexibility as business cycle smoothing devices. Given the presence of financial frictions the paper gives a richer explanation of the mechanism behind the stabilization properties of floating exchange rates and explains the difference in sign of the international transmission of shocks compared to the model without capital. In a two country model without capital the pattern of output is mainly determined by the pattern of consumption: any movement in the exchange rate under floating exchange rates causes movements in the price of the international traded bond and in consumption and consequently in output. In the model with capital and financial frictions output mimics the movements in investment: an active monetary authority reacting to exchange rate movements generates perverse movements in the interest rate, destabilizing investment and output. The paper also suggests how monetary policy can improve financial stability, stressing the importance of the interest rate smoothing in tuning movements in investment and output and in reducing the welfare cost of financial frictions mostly under fixed exchange rates. JEL Classification: E3, E42, E44, E52, F41" @default.
- W3125859095 created "2021-02-01" @default.
- W3125859095 creator A5006984607 @default.
- W3125859095 date "2001-04-01" @default.
- W3125859095 modified "2023-09-27" @default.
- W3125859095 title "Stabilization policy in a two country model and the role of financial frictions" @default.
- W3125859095 hasPublicationYear "2001" @default.
- W3125859095 type Work @default.
- W3125859095 sameAs 3125859095 @default.
- W3125859095 citedByCount "1" @default.
- W3125859095 crossrefType "posted-content" @default.
- W3125859095 hasAuthorship W3125859095A5006984607 @default.
- W3125859095 hasConcept C126285488 @default.
- W3125859095 hasConcept C139719470 @default.
- W3125859095 hasConcept C162324750 @default.
- W3125859095 hasConcept C175025494 @default.
- W3125859095 hasConcept C175444787 @default.
- W3125859095 hasConcept C2776071005 @default.
- W3125859095 hasConcept C2776988154 @default.
- W3125859095 hasConcept C2778762746 @default.
- W3125859095 hasConcept C2781127519 @default.
- W3125859095 hasConcept C2781395280 @default.
- W3125859095 hasConcept C556758197 @default.
- W3125859095 hasConcept C80799131 @default.
- W3125859095 hasConcept C83873408 @default.
- W3125859095 hasConceptScore W3125859095C126285488 @default.
- W3125859095 hasConceptScore W3125859095C139719470 @default.
- W3125859095 hasConceptScore W3125859095C162324750 @default.
- W3125859095 hasConceptScore W3125859095C175025494 @default.
- W3125859095 hasConceptScore W3125859095C175444787 @default.
- W3125859095 hasConceptScore W3125859095C2776071005 @default.
- W3125859095 hasConceptScore W3125859095C2776988154 @default.
- W3125859095 hasConceptScore W3125859095C2778762746 @default.
- W3125859095 hasConceptScore W3125859095C2781127519 @default.
- W3125859095 hasConceptScore W3125859095C2781395280 @default.
- W3125859095 hasConceptScore W3125859095C556758197 @default.
- W3125859095 hasConceptScore W3125859095C80799131 @default.
- W3125859095 hasConceptScore W3125859095C83873408 @default.
- W3125859095 hasLocation W31258590951 @default.
- W3125859095 hasOpenAccess W3125859095 @default.
- W3125859095 hasPrimaryLocation W31258590951 @default.
- W3125859095 hasRelatedWork W114877754 @default.
- W3125859095 hasRelatedWork W1533385627 @default.
- W3125859095 hasRelatedWork W1561094912 @default.
- W3125859095 hasRelatedWork W1651563927 @default.
- W3125859095 hasRelatedWork W1917641649 @default.
- W3125859095 hasRelatedWork W1974979277 @default.
- W3125859095 hasRelatedWork W1989254603 @default.
- W3125859095 hasRelatedWork W2098966726 @default.
- W3125859095 hasRelatedWork W2134712988 @default.
- W3125859095 hasRelatedWork W2166447384 @default.
- W3125859095 hasRelatedWork W2173972876 @default.
- W3125859095 hasRelatedWork W2261696011 @default.
- W3125859095 hasRelatedWork W2468784070 @default.
- W3125859095 hasRelatedWork W2589974358 @default.
- W3125859095 hasRelatedWork W2725647040 @default.
- W3125859095 hasRelatedWork W2885448587 @default.
- W3125859095 hasRelatedWork W3121187575 @default.
- W3125859095 hasRelatedWork W3121409427 @default.
- W3125859095 hasRelatedWork W3122819943 @default.
- W3125859095 hasRelatedWork W3123239608 @default.
- W3125859095 isParatext "false" @default.
- W3125859095 isRetracted "false" @default.
- W3125859095 magId "3125859095" @default.
- W3125859095 workType "article" @default.