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investigate on the mechanisms that allow the US to do so, this paper sets up a two country DGE model with asymmetric liquidity … Seigniorage and valuation effects to be able to run a continuous current account deficit. These mechanisms work in favour of their …
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This paper develops strategic monetary policies using a standard two-country macro model under flexible exchange rates. The equilibria considered include feedback Nash and feedback Stackelberg, both of which are compared to the Pareto optimal cooperative equilibrium. The optimal policies are...
Persistent link: https://www.econbiz.de/10012777253
This paper examines the effects of restrictions on international financial markets. We analyze a general equilibrium, rational expectations model of a two-country world in which well-functioning international financial markets premit trade in all state-contingent securities except insofar as...
Persistent link: https://www.econbiz.de/10013232761
This paper examines the effects of restrictions on international financial markets. We analyze a general equilibrium, rational expectations model of a two-country world in which well-functioning international financial markets premit trade in all state-contingent securities except insofar as...
Persistent link: https://www.econbiz.de/10012477324