کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5055482 | 1371491 | 2011 | 7 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Beggar-thyself or beggar-thy-neighbour? The welfare effects of monetary policy Beggar-thyself or beggar-thy-neighbour? The welfare effects of monetary policy](/preview/png/5055482.png)
This paper examines whether monetary expansion is a beggar-thyself or beggar-thy-neighbour policy. Obstfeld and Rogoff (1995) show that monetary expansion under producer currency pricing increases domestic and foreign overall welfare, in cases where the cross-country substitutability is high. If the cross-country substitutability is low, then monetary expansion is a beggar-thyself policy that reduces domestic welfare and increases foreign welfare (Corsetti & Pesenti 2001; Tille 2001). In this paper, we will show that regardless of whether the cross-country substitutability is high or low, monetary expansion is always a beggar-thyself policy in the short run.
⺠We examine whether monetary expansion increases or decreases domestic and foreign welfare. ⺠Earlier research showed that the effect on overall welfare depends on the size of the cross-country substitutability. ⺠We show that in the short run it is always beggar-thyself, regardless of the size of the cross-country substitutability.
Journal: Economic Modelling - Volume 28, Issue 4, July 2011, Pages 2034-2040