Money-based stabilization in a small open economy
Journal of Macroeconomics, 2008, vol. 30, issue 1, 462-480
We studied the effects of a credible money-based stabilization program under a flexible exchange rate regime in the context of New-Keynesian dynamic general equilibrium model for a small open economy. In this study, we successfully replicated the main stylized facts of money-based stabilization, a slow inflation convergence and an initial recession in domestic sector. In contrast with the previous results, however, a credible money-based disinflation in this model produces a sustained expansion in domestic sector after the initial contraction.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:30:y:2008:i:1:p:462-480
Access Statistics for this article
Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos
More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().