Bacchetta, Philippe; Benhima, Kenza; Kalantzis, Yannick - National Centre of Competence in Research - Financial … - 2011
Motivated by the Chinese experience, we analyze a semi-open economy where the centralbank has access to international capital markets, but the private sector has not. Thisenables the central bank to choose an interest rate different from the international rate.We examine the optimal policy of...