Search Results - subject:"terms of trade externality"

Time-consistent monetary policy, terms of trade manipulation and welfare in open economies

Schmidt, Sebastian - 2018

A key insight from the open economy literature is that domestic price stability is in general not optimal for countries that exert some market power over their terms of trade. Under commitment, a national benevolent monetary policymaker improves upon the allocation associated with stable...

Persistent link: https://www.econbiz.de/10011853316

Time-consistent monetary policy, terms of trade manipulation and welfare in open economies

Schmidt, Sebastian - 2018

Persistent link: https://www.econbiz.de/10011792170

The economics of permissible WTO retaliation

Bown, Chad P.; Ruta, Michele - 2008

We examine how theoretical and quantitative economic analysis has and can be used in this stage of the DSU process. First, we identify, characterize, and categorize the major classes of disputes e.g., those affecting import protection versus export promotion and use the Bagwell and Staiger...

Persistent link: https://www.econbiz.de/10010326717

The economics of permissible WTO retaliation

Bown, Chad P.; Ruta, Michele - Economic Research and Statistics Division (ERSD), World … - 2008

Persistent link: https://www.econbiz.de/10011115044

Openness, Government Size and the Terms of Trade

Epifani, Paolo; Gancia, Gino - Institut für Volkswirtschaftslehre, … - 2008

empirically. We argue that openness can increase the size of governments through two channels: (1) a terms of trade externality … openness and government size and we explore its determinants. Consistently with the terms of trade externality channel, we show …

Persistent link: https://www.econbiz.de/10005627946

On the Benefits of a Monetary Union: Does it Pay to Be Bigger?

Forlati, Chiara - Chaire de Finance Internationale, Collège du … - 2007

This paper revisits the question of the appropriate domain of a currency area using a New-Keynesian open economy model in which the world is split in two areas, each framed as a continuum of small open regions. We show that the adoption of a common currency like the euro can be beneficial for...

Persistent link: https://www.econbiz.de/10010616771

On the Benefits of a Monetary Union: does it pay to be bigger?

Forlati, Chiara - Chaire de Finance Internationale, Collège du … - 2007

A two area dynamic stochastic general equilibrium model is employed to investigate the welfare implications of losing monetary independence. Two policy regimes are compared: (i) in one area there is a common currency, while in the other area countries still retain their autonomous monetary...

Persistent link: https://www.econbiz.de/10008467126

Openness, government size and the terms of trade

Epifani, Paolo; Gancia, Gino - Department of Economics and Business, Universitat … - 2005

empirically. We show that openness can increase the size of governments through two channels: (1) a terms of trade externality … insurance is optimal. We show that large volumes of trade may result in welfare losses if the terms of trade externality is … between openness and the size of government and test whether it is consistent with the terms of trade externality or the …

Persistent link: https://www.econbiz.de/10005772212