Showing 1 - 10 of 92
The closed and open economy literatures both work on evaluating the role of real rigidities, but in parallel. This paper brings the two literatures together. We use international price data and exchange rate shocks to evaluate the importance of real rigidities in price setting. We show that,...
Persistent link: https://www.econbiz.de/10008663357
Persistent link: https://www.econbiz.de/10003979300
Persistent link: https://www.econbiz.de/10009155193
Persistent link: https://www.econbiz.de/10009487140
Persistent link: https://www.econbiz.de/10009408558
Persistent link: https://www.econbiz.de/10010367599
The closed and open economy literatures both work on evaluating the role of real rigidities, but in parallel. This paper brings the two literatures together. We use international price data and exchange rate shocks to evaluate the importance of real rigidities in price setting. We show that,...
Persistent link: https://www.econbiz.de/10013136982
We show that even when the exchange rate cannot be devalued, a small set of conventional fiscal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open economy environment. We perform the analysis under...
Persistent link: https://www.econbiz.de/10013117401
A central assumption of open economy macro models with nominal rigidities relates to the currency in which goods are priced, whether there is so-called producer currency pricing or local currency pricing. This has important implications for exchange rate pass-through and optimal exchange rate...
Persistent link: https://www.econbiz.de/10012759802
The authors show that even when the exchange rate cannot be devalued, a small set of conventional fiscal policy instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a standard New Keynesian open economy environment. They perform the...
Persistent link: https://www.econbiz.de/10013079997