| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP5586 |
| DP5586 How Important is Access to Jobs? Old Question - Improved Answer | |
| Yves Zenou; Olof Aslund; John Östh | |
| 发表日期 | 2006-03-27 |
| 出版年 | 2006 |
| 语种 | 英语 |
| 摘要 | We analyze optimal monetary policy in a small open economy characterized by home bias in consumption. Peculiar to our framework is the application of a Ramsey-type analysis to a model of the recent open economy New Keynesian literature. We show that home bias in consumption is a sufficient condition for inducing monetary policy-makers of an open economy to deviate from a strategy of strict markup stabilization and contemplate some (optimal) degree of exchange rate stabilization. We focus on the optimal setting of policy both in the case in which firms set prices one period in advance as well as in the case in which firms set prices in a dynamic forward-looking fashion. While the first setup allows us to analytically highlight home bias as an independent source of equilibrium markup variability, the second setup allows us to study the effects of future expectations on the optimal policy problem and the effect of home bias on optimal inflation volatility. The latter, in particular, is shown to be related to the degree of trade openness in a U-shaped fashion, whereas exchange rate volatility is monotonically decreasing in openness. |
| 主题 | International Macroeconomics |
| 关键词 | Optimal monetary policy Ramsey planner Home bias Sticky prices |
| URL | https://cepr.org/publications/dp5586 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/534440 |
| 推荐引用方式 GB/T 7714 | Yves Zenou,Olof Aslund,John Östh. DP5586 How Important is Access to Jobs? Old Question - Improved Answer. 2006. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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