in housing prices would lead to a recession-like impact on household consumption and unemployment. The impact would be …

In this paper, we incorporate key ingredients of a small open economy into the New Keynesian model with unemployment of …, wage inflation, and the output gap if both domestic price and wage are sticky. Second, stabilizing unemployment rate is … unemployment rate as an another argument into the Taylor-rule type interest rate rule will be welfare-enhancing. Last, controlling …

is characterised by involuntary unemployment due to non-market clearing wages that are fixed either in terms of the …