Optimal Monetary Policy in a Small Open Economy with Habit Formation and Nominal Rigidities

Optimal Monetary Policy in a Small Open Economy with Habit Formation and Nominal Rigidities
Author: Woon Gyu Choi
Publisher: International Monetary Fund
Total Pages: 40
Release: 2003
Genre: Business & Economics
ISBN:


Download Optimal Monetary Policy in a Small Open Economy with Habit Formation and Nominal Rigidities Book in PDF, Epub and Kindle

Introducing habit formation into an open economy macroeconomic model with price stickiness, we examine the characteristics of an optimal monetary policy. We find that, first, the optimal policy rule entails interest rate smoothing and responds to the lagged values of the foreign interest rate and domestic technology shocks as well as their current values. Second, habit formation enriches the dynamics of the economy with a persistent, hump-shaped response of consumption to shocks. Finally, when habit formation does matter, the optimal policy rule achieves a greater welfare improvement over alternative policy rules by achieving lower macroeconomic variability.


Optimal Monetary Policy in a Small Open Economy with Habit Formation and Nominal Rigidities
Language: en
Pages: 40
Authors: Woon Gyu Choi
Categories: Business & Economics
Type: BOOK - Published: 2003 - Publisher: International Monetary Fund

GET EBOOK

Introducing habit formation into an open economy macroeconomic model with price stickiness, we examine the characteristics of an optimal monetary policy. We fin
Optimal monetary policy in a small open economy with habit formation and nominal rigidities
Language: en
Pages: 33
Authors: Woon Gyu ; Jung Ghoi (Yongseung)
Categories:
Type: BOOK - Published: 2003 - Publisher:

GET EBOOK

Optimal Monetary Policy in a Small Open Economy Under Segmented Asset Markets and Sticky Prices
Language: en
Pages: 62
Authors: Ruy Lama
Categories: Business & Economics
Type: BOOK - Published: 2007-09 - Publisher: International Monetary Fund

GET EBOOK

This paper studies optimal monetary policy in a two-sector small open economy model under segmented asset markets and sticky prices. We solve the Ramsey problem
Monetary Policy in a Small Open Economy with Credit Goods Production
Language: en
Pages: 20
Authors: Mr.Jorge A. Chan-Lau
Categories: Business & Economics
Type: BOOK - Published: 1998-10-01 - Publisher: International Monetary Fund

GET EBOOK

The paper analyzes the effects of monetary policy in a dynamic model of a small open economy with cash and credit goods production, where government consumption
Optimal Monetary Policy in Closed Versus Open Economies
Language: en
Pages: 32
Authors: Richard H. Clarida
Categories: Economics
Type: BOOK - Published: 2001 - Publisher:

GET EBOOK

This paper develops a new open economy macro model of optimal monetary for a small open economy. Our main result is that in this model, the optimal policy probl