Financial openness, nontradable inflation and optimal monetary policy

Emmanuel Lartey

Economics Letters, 2012, vol. 117, issue 3, 782-785

Abstract: This paper examines capital inflow dynamics for varying degrees of financial openness under a Taylor-type rule. The findings show that higher openness generates a more sensitive response in nontradable inflation, and that optimal monetary policy varies with the degree of openness.

Keywords: Financial openness; Capital inflows; Real exchange rate (search for similar items in EconPapers)
JEL-codes: E52 F40 F41 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176512004958
Full text for ScienceDirect subscribers only

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:eee:ecolet:v:117:y:2012:i:3:p:782-785

DOI: 10.1016/j.econlet.2012.08.043

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().