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1979. The normative part, while finding only a weak case for regulating foreign pension investment (loss of savings …
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-capital-stock steady state may be either a sink or a source, depending on the rate of domestic money creation, the world interest rate and … the level of domestic reserve requirements. An increase in the rate of money creation, the world interest rate or the …. At the same time, sufficiently large increases in the rate of money growth or the world interest rate can transform the …
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This paper investigates the effect of financial instability on the design of monetary policy rule for a small open economy. We find evidence that optimal monetary policy rule reacts directly to financial imbalances and, as a result, to the real exchange rate movements. However, optimal rule...
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