Monetary policy in a small open economy with durable goods and differing cash-in-advance constraints

We consider the effects of inflation in a small open economy when expenditures on non-durables are more heavily financed with money than expenditures on durables. The distinctions between non-durables and durables, and asymmetric cash-in-advance constraints give rise to important dynamics.

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Year of publication:	2010
Authors:	Mansoorian, Arman ; Michelis, Leo
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 107.2010, 2, p. 246-248
Publisher:	Elsevier
Subject:	Inflation Cash Credit Durables Capital

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008551350