Castillo, Paul; Montoro, Carlos; Tuesta, Vicente - Banco Central de Reserva del Perú - 2009
be linked,
whatsoever, to higher in�ation rates.
JEL Classi�cation: E52, E42, E12, C63
Keywords: Small Open Economy Model … b y Forbes a nd Rigo bon
the second order solution of stochastic small open economy model in the line of the "New Open … parameters. Section 4 concludes.
2 The model
We consider a two country open economy model with imperfect competition and price …