Monetary policy and demand management for the small open economy in contemporary conditions with (perfectly) mobile capital

This paper provides a theoretical framework within which to examine issues of macroeconomic policy autonomy for the small open economy in an increasingly global international environment. We show that substantial policy leverage continues to exist provided that the jurisdictions concerned maintain separate monetary systems, which ensures that the condition of perfect asset substitutability will fail to apply.

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Year of publication:	2004
Authors:	KAM, ERIC ; SMITHIN, JOHN
Published in:	Journal of Post Keynesian Economics. - M.E. Sharpe, Inc., ISSN 0160-3477. - Vol. 26.2004, 4, p. 679-694
Publisher:	M.E. Sharpe, Inc.
Subject:	exchange rates \| globalization \| interest rates \| macroeconomic policy

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005233034