On the use of open economy new Keynesian models to evaluate policy rules

This paper considers the use of new Keynesian open economy models to evaluate monetary policy rules. While recognizing the importance policy evaluation with such models, it presents a number of criticisms about assumptions relating to wage determination, the real interest rate, divine coincidence and financial stability.

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Year of publication:	2014
Authors:	Obstfeld, Maurice
Published in:	Journal of Economic Dynamics and Control. - Elsevier, ISSN 0165-1889. - Vol. 49.2014, C, p. 31-34
Publisher:	Elsevier
Subject:	Monetary policy rules \| Open economy models \| Divine coincidence

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

Persistent link: https://www.econbiz.de/10011117355