| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5083872 | International Review of Economics & Finance | 2013 | 24 Pages |
Abstract
⺠We estimate how monetary policy works in small open economies. ⺠We build a DSGE model that incorporates the basic features of these economies. ⺠In the short run, a positive risk premium shock expands GDP. ⺠Central banks can avoid this excess volatility by raising the interest rate. ⺠However, this result depends crucially on the mix of shocks hitting the economy.
Related Topics
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Economics and Econometrics
Authors
Carlos J. GarcÃa, Wildo D. González,