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Monetary policy under alternative asset market structures : the case of a small open economy

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Monetary policy under alternative asset market structures : the case of a small open economy

De Paoli, Bianca (contributor) - 2009

Can the structure of asset markets change the way monetary policy should be conducted? Following a linear-quadratic approach, the present paper addresses this question in a New Keynesian small open economy framework. Our results reveal that the configuration of asset markets significantly...