| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP14952 |
| DP14952 Trade, Unemployment, and Monetary Policy | |
| Matteo Cacciatore; Fabio Ghironi | |
| 发表日期 | 2020-06-27 |
| 出版年 | 2020 |
| 语种 | 英语 |
| 摘要 | We study how trade linkages affect the conduct of monetary policy in a two-country model with heterogeneous firms, endogenous producer entry, and labor market frictions. We show that the ability of the model to replicate key empirical regularities following trade integration---synchronization of business cycles across trading partners and reallocation of market shares toward more productive firms---is central to understanding how trade costs affect monetary policy trade-offs. First, productivity gains through firm selection reduce the need of positive inflation to correct long-run distortions. As a result, lower trade costs reduce the optimal average inflation rate. Second, as stronger trade linkages increase business cycle synchronization, country-specific shocks have more global consequences. Thus, the optimal stabilization policy remains inward looking. By contrast, sub-optimal, inward-looking stabilization---for instance too narrow a focus on price stability---results in larger welfare costs when trade linkages are strong due to inefficient fluctuations in cross-country aggregate demand. |
| 主题 | International Macroeconomics and Finance ; Monetary Economics and Fluctuations |
| 关键词 | Trade integration Optimal monetary policy |
| URL | https://cepr.org/publications/dp14952 |
| 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/543897 |
| 推荐引用方式 GB/T 7714 | Matteo Cacciatore,Fabio Ghironi. DP14952 Trade, Unemployment, and Monetary Policy. 2020. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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