| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5083720 | International Review of Economics & Finance | 2013 | 11 Pages |
Abstract
⺠A New Keynesian open economy model with three sectors is developed. ⺠Credit frictions and interest rate rigidity are considered in the model. ⺠We examine the dynamics between home prices, home consumption and interest rates. ⺠Borrowers home consumption moves procyclically with home prices and loan rates. ⺠Policy shocks have a magnified spillover effect on consumption in an open economy.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Shiou-Yen Chu,