General equilibrium optimizing models with sticky nominal prices allow us to revisit questions about optimal monetary policy in open economies. If nominal prices are set in producers' currencies, appropriate monetary policy can reproduce the allocations under flexible prices. If nominal prices...

-- INTRODUCTION. -- PART I: GROWTH. -- Chapter 1: Representative Agent Model. -- Chapter 2: Open Economy Representative Agent Model. -- Chapter 3: Overlapping Generations. -- Chapter 4: Solow Model. -- Chapter 5: Endogenous Savings and Growth. -- PART II: FLUCTUATION AND INFLATION. -- Chapter 6:...

Der vorliegende Diskussionsbeitrag entstand im Rahmen eines Forschungsprojektes über die monetäre Integration von fünf mittel- und osteuropäischen EU-Beitrittskandidaten (Polen, Tschechische Republik, Ungarn, Slowenien und Estland). Das hier vorgestellte Kapitel geht auf die...

This paper develops a model of inflation inertia based on optimizing forward looking staggered price setting in a small open economy. Unlike in current models of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they are associated...

This paper develops a model of inflation inertia based on optimizing forward looking staggered price setting in a small open economy. Unlike in current models of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they are associated...

In this paper, we measure the welfare costs/gains associated with financial market incompleteness in a monetary union. To do this, we build on a two-country model of a monetary union with sticky prices subject to asymmetric productivity shocks. For most plausible values of price stickiness, we...