Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5061104 | Economics Letters | 2010 | 4 Pages |
Abstract
I solve for equilibrium portfolios in a two-country, two-good dynamic stochastic general equilibrium (DSGE) model where the only traded assets are locally-denominated real bonds. Unless the elasticity of substitution between goods is exceptionally low, the model predicts that each country will hold a short position in foreign bonds.
Keywords
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Economics and Econometrics
Authors
David Amdur,