The natural rate of interest in a small open economy

Fernando Barbosa

No 121, Working Papers from Universidade Federal do Paraná, Department of Economics

Abstract: The goal of this paper is to show that the natural rate of interest in a small open economy, with access to the world capital markets, is equal to the international real rate of interest. We show this property by using the infinitely-lived overlapping generations model and we use this model to analyze both fixed and flexible exchange rate regimes.

Keywords: small open economy; natural rate of interest; complete and incomplete asset markets (search for similar items in EconPapers)
JEL-codes: F41 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2011
New Economics Papers: this item is included in nep-dge and nep-mon
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Related works:
Working Paper: THE NATURAL RATE OF INTEREST IN A SMALLOPEN ECONOMY (2014)
Working Paper: The Natural Rate of Interest in a Small Open Economy (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:fup:wpaper:0121

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