Basu, Parantap; Thoenissen, Christoph - Centre for Dynamic Macroeconomic Analysis, University … - 2009
specify a monetary policy rule. To obtain the �exible price
allocation, we simply assume that the monetary authorities in both …. The result is a counter-cyclical series for consumption as well as the current account. The
current account is also more … dynamic
e�ects of a shock to monetary policy, Journal of Political Economy, Vol. 113 (1), pages 1 - 45.
[7] Corsetti, G …