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Canada's Pioneering Experience with a Flexible Exchange Rate in the 1950s : (Hard) Lessons Learned for Monetary Policy in a Small Open Economy
Bordo, Michael D. - 2007
This paper revisits Canada's pioneering experience with floating exchange rate over the period 1950-1962. It examines … whether the floating rate was the best option for Canada in the 1950s by developing and estimating a New Keynesian small open … that monetary policy was more volatile in the post-1957 period and Canada's macroeconomic performance suffered as a result …
Persistent link: https://www.econbiz.de/10012465041
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Can Structural Small Open Economy Models Account for the Influence of Foreign Disturbances?
Justiniano, Alejandro - 2008
between Canada and U.S. are essentially zero. Both findings are at odds with the data. A specification that assumes correlated …
Persistent link: https://www.econbiz.de/10012464100
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A Small Open Economy in Depression : Lessons from Canada in the 1930s
Betts, Caroline M. - 1993
open economy model for Canada that decomposes output fluctuations into sources identifiable with world and country …-specific disturbances. We find that the onset, depth and duration of output collapse in both Canada and the U.S. are primarily attributable …
Persistent link: https://www.econbiz.de/10012474427
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Optimal Bank Reserve Remuneration and Capital Control Policy
Chi, Chun-che; Schmitt-Grohé, Stephanie; Uribe, Martín - National Bureau of Economic Research - 2021
This paper studies optimal capital-control and bank-reserve remuneration policy in an open economy with a banking channel and a collateral constraint that limits household debt by a fraction of income. It finds that the unregulated economy borrows too little relative to what is optimal...
Persistent link: https://www.econbiz.de/10012696382
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Optimal Monetary Growth with Accomodating Fiscal Policy in a Small Open Economy
Turnovsky, Stephen J. - 1986
This paper emphasizes how the choice of the optimal monetary growth rate in a small open economy under perfect capital mobility depends upon the accommodating policy chosen to maintain the overall budget constraint in the economy. When this occurs through lump sum taxation, the optimal monetary...
Persistent link: https://www.econbiz.de/10012476986
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Small Countries in Monetary Unions : A Two-Tier Model
de Macedo, Jorge Braga - 1985
In a previous analysis of the West African Monetary Union, Macedo(1985a), size is taken to be a major structural characteristic of a country in the sense that large countries are not affected by disturbances originating in small countries but small countries are affected by large countries'...
Persistent link: https://www.econbiz.de/10012477446
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World Food Prices and Monetary Policy
Catão, Luis - 2010
In recent years, large fluctuations in world food prices have renewed interest in the question of how monetary policy in small open economies should react to imported price shocks. We address this issue in an open economy setting similar to previous ones except that food plays a distinctive role...
Persistent link: https://www.econbiz.de/10012462094
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Monetary Policy Trade-Offs in an Estimated Open-Economy DSGE Model
Adolfson, Malin - 2008
This paper studies the transmission of shocks and the trade-offs between stabilizing CPI inflation and alternative measures of the output gap in Ramses, the Riksbank's empirical dynamic stochastic general equilibrium (DSGE) model of a small open economy. The main results are, first, that the...
Persistent link: https://www.econbiz.de/10012464137
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Interest Rates and the Exchange Rate : A Non-Monotonic Tale
Hnatkovska, Viktoria - 2008
What is the relationship between interest rates and the exchange rate? The empirical literature in this area has been inconclusive. We use an optimizing model of a small open economy to rationalize the mixed empirical findings. The model has three key margins. First, higher domestic interest...
Persistent link: https://www.econbiz.de/10012464722
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Interest Rate Rules, Inflation Stabilization, and Imperfect Credibility : The Small Open Economy Case
Calvo, Guillermo A. - 2007
The paper examines the robustness of Interest Rate Rules, IRRs, in the context of an imperfectly credible stabilization program, closely following the format of much of the literature in open-economy models, e.g., Calvo and Végh (1993 and 1999). A basic result is that IRRs, like Exchange Rate...
Persistent link: https://www.econbiz.de/10012465476