This article presents a small open economy model which is a part of the world that consists of a continuum of infinitesimal open economies. New Keynesian Investment Saving Line (IS) and Phillips curves are derived for the small open economy and the rest of the world. For five different policies,...

This paper assesses the stability of the money-income relationship for seven OECD countries. When the sample was split into two subsamples: pre- and post-1980, the empirical evidence presented in this paper shows that even if the inferences gathered across countries are not always parallel, the...