Degree of openness and inflation targeting policy: model of a small open economy

Jihene Bousrih ()

Journal of Financial Economic Policy, 2012, vol. 4, issue 3, 232-246

Abstract: Purpose - The purpose of this paper is to deal with the dynamics of a Neo‐Keynesian model applied to a small open economy, in order to show the impact of commercial openness on the choice of the optimal inflation target. Design/methodology/approach - The author uses a neo‐Keynesian model with calibration for Chile. Findings - The results show that there is a relation between the degree of openness and the type of inflation targeting policy. Originality/value - The originality of the paper is to use a neo‐Keynesian model to deal with a small open economy, which uses inflation targeting as a monetary rule.

Keywords: Chile; National economy; Monetary policy; Prices; Inflation; Consumer price index inflation; Producer price index inflation; Pass‐through; Degree of openness (search for similar items in EconPapers)
Date: 2012
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Related works:
Working Paper: Degree of openness and inflation targeting policy: Model of a small open economy (2011)
Working Paper: Degree of openness and inflation targeting policy: model of a small open economy (2011)
Working Paper: Degree of openness and inflation targeting policy: model of a small open economy (2010)
Working Paper: Degree of openess and inflation targeting policy: model of small open economy (2010)
Working Paper: Degree of Openness and Inflation Targeting Policy: Model of a Small Open Economy (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfeppp:v:4:y:2012:i:3:p:232-246

DOI: 10.1108/17576381211245962

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