inflation volatility faced by the central bank of a small open economy by analysing the impact of a global cost-push shock. We … worsen as the foreign central bank becomes more focused on output stabilisation relative to inflation stabilisation; but the …

and Galí (2006, 2008) New-Keynesian model of inflation and unemployment, where labor market frictions due to costs of … alternative values of hiring costs as a percentage of GDP. Under low hiring costs - a typical part of the U.S. calibration - for … policy rules based on current period inflation and unemployment our results are similar to those of Bullard and Mitra (2002 …

inflation volatility faced by the central bank of a small open economy by analysing the impact of a global cost-push shock. We … worsen as the foreign central bank becomes more focused on output stabilisation relative to inflation stabilisation; but the …