Today from the UK with Brexit leavers and remainers, to Venezuela and Turkey, the USA and Brazil, South Korea and Kenya we find governments whose legitimacy is under question, and whose voters are almost equally divided between one camp or another. No election goes uncontested and no office...

This paper analyses the implications of imperfect exchange rate passthrough for optimal monetary policy in a linearised open-economy dynamic general equilibrium model calibrated to euro area data. Imperfect exchange rate pass through is modelled by assuming sticky import price behaviour. The...