Small open economy new keynesian phillips curve: derivation and application to Israel

Alon Binyamini ()
Additional contact information
Alon Binyamini: Bank of Israel

Israel Economic Review, 2007, vol. 5, issue 1, 67-92

Abstract: A New Keynesian Phillips Curve is derived for a small open economy with the characteristics of the Israeli economy: price indexation to inflation of the Consumer Price Index and to depreciation of the Shekel against the US$. Estimation is then carried out, in order to study the inflation dynamic in Israel under the inflation targeting regime from 1995 to 2006. The main results show that the openness of small economy in general, and the characteristics of the Israeli economy in particular, induce significant channels of influence from the exchange rate in the transmission mechanism of the monetary policy.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
https://boiwebrepec.azurefd.net/RePEc/boi/isrerv/IsER_5_2007_1_067-092.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boi:isrerv:v:5:y:2007:i:1:p:67-92

Access Statistics for this article

More articles in Israel Economic Review from Bank of Israel Contact information at EDIRC.
Bibliographic data for series maintained by Yossi Yakhin ().