The Risky Steady-State

Helene Rey, Nicolas Coeurdacier and Pablo Winant

No 8751, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We propose a simple quantitative method to linearize around the risky steady state of a small open economy. Unlike when the deterministic steady state is used, the net foreign asset position is well defined. We allow for both stochastic income and stochastic interest rate.

Keywords: Steady; state (search for similar items in EconPapers)
JEL-codes: E10 F41 (search for similar items in EconPapers)
Date: 2012-01
New Economics Papers: this item is included in nep-dge and nep-mac
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Related works:
Journal Article: The Risky Steady State (2011)
Working Paper: The risky steady state (2011)
Working Paper: The risky steady state (2011)
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