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A Simple Open-Economy Model with Financial Frictions

Pierre-Richard Agénor ()
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Pierre-Richard Agénor: University of Manchester, School of Social Sciences

Chapter 3 in Monetary Policy and Macroprudential Regulation with Financial Frictions, 2025, pp 115-194 from Springer

Abstract: Abstract extends the simple model presented in Chap. 2 to the open economy. It therefore accounts for trade in goods and assets and considers three exchange rate regimes: fixed exchange rates, flexible exchange rates, and managed floating. As in Chap. 2 , the transmission mechanism of monetary and macroprudential policies, both individually and in combination (this time in responding to domestic an external shocks) is also studied.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-032-01673-7_3

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DOI: 10.1007/978-3-032-01673-7_3

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