Ferrero, Andrea; Gertler, Mark; Svensson, Lars E. O. - 2008
"We explore the implications of current account adjustment for monetary policy within a simple two-country DSGE model … rigidities in order to study the role of monetary policy. We consider two different adjustment scenarios. The first is a "slow … country's current account. We examine several different monetary policy regimes under each of these scenarios. Our principal …