The considerable amount of research in recent years on New Keynesian, open-economy models - models with nominal price rigidities and intertemporally maximizing agents - has yielded fresh insights for what Alan Blinder has called the "dark art" of making monetary policy. The literature has made...

This paper studies the determinants of business cycles in small open economies and adds to the discussion about the changing nature of inflation dynamics. We estimate a series of VAR models for a set of six Asian emerging market economies, in which we identify a battery of domestic and global...

In a VAR model of the US, the response of the relative price of durables to a monetary contraction is either flat or mildly positive. It significantly falls only if narrowly defined as the ratio between new house and nondurables prices. These findings survive three identification strategies and...