Article ID Journal Published Year Pages File Type
5059717 Economics Letters 2012 4 Pages PDF
Abstract
► I address the sensitivity of nontradable inflation under financial openness. ► I ascertain whether the optimal policy rule varies with the degree of financial openness. ► Higher openness generates a more sensitive response in nontradable inflation. ► Welfare increases with openness when monetary policy is conducted optimally.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Financial openness, nontradable inflation and optimal monetary policy
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