Economics at your fingertips  

Optimal Monetary Policy in Small Open Economies: Producer Currency Pricing

Mikhail Dmitriev and Jonathan Hoddenbagh ()
Additional contact information
Jonathan Hoddenbagh: Department of Economics, Johns Hopkins University

Working Papers from Department of Economics, Florida State University

Abstract: We establish the share of exports in production as a sufficient statistic for optimal noncooperative monetary policy. Under financial autarky, markups positively co-move with the export share. For complete markets, markups should be procyclical if the export share is procyclical. When central banks cooperate, markups are constant under complete markets, and countercyclical under financial autarky.

Keywords: open economy macroeconomics; optimal monetary policy; price stability (search for similar items in EconPapers)
JEL-codes: E50 F41 F42 (search for similar items in EconPapers)
Pages: 60
Date: 2019-10
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon, nep-opm and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) First version, 2019-10

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:

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Department of Economics, Florida State University Contact information at EDIRC.
Bibliographic data for series maintained by Dmitry Ryvkin ().

Page updated 2020-07-01
Handle: RePEc:fsu:wpaper:wp2019_10_01