We develop a model of a small open economy with three types of nominal rigidities (domestic goods prices, imported goods prices and wages) and eight different structural shocks. We estimate the model's structural parameters using a maximum likelihood procedure and use it to compute...

This paper extends the framework provided by Aksoy, De Grauwe, Dewachter (2000). We first provide an econometric analysis of the stabilising properties of the monetary policy in the EMU countries within an open economy framework and obtain optimal feedback rules for monetary policymaking. In a...

I develop a three-country center-periphery sticky-price general equilibrium model to study alternative exchange rate regimes for East Asian economies. The model is evaluated under two price-setting specifications: producer currency pricing (PCP) and dollar standard, a specification where export...

Empirical evidence suggests (i) that the real exchange rates of developing economies show less persistence than do those of more advanced economies and (ii) that the elasticity of substitution between capital and labor tends to increase from below unity for less developed economies to above one...

In the standard models of North-South technological-knowledge diffusion, the larger the initial technological-knowledge gap between countries is, the higher the Southern catching up. However, this result does not adjust well to Southern reality as a whole. The purpose of this paper is to...

In this paper we study the productivity slowdown taking as a starting point the nonlinear shape of the growth path. We relate the slowdown to the evolution of the world income distribution and show that i) in the periods before and after the oil shocks growth is nonlinear; ii) the productivity...