Showing 1 - 10 of 51
Persistent link: https://www.econbiz.de/10005540335
The effects of inflation are worked out for a small open economy with Cash-in-Advance (CIA) constraints on bond purchases. If all transactions are subject to CIA constraints, an increase in the inflation rate will reduce savings, bringing about a current account deficit, while the capital stock...
Persistent link: https://www.econbiz.de/10010869425
In this paper we study the effects of monetary policies on employment, capital accumulation, consumption, and the term structure of interest rates in a cash-in-advance economy, where money is required for consumption expenditures. Monetary policy involves targeting the inflation rate. The...
Persistent link: https://www.econbiz.de/10005604603
Persistent link: https://www.econbiz.de/10005715221
Persistent link: https://www.econbiz.de/10008552561
The effects of trade liberalizations are studied for a small open economy in a model with durable goods. A trade liberalization increases the permanent income of the representative agent, because it removes trade distortions. The increase in permanent income leads to a corresponding increase in...
Persistent link: https://www.econbiz.de/10008870360
Persistent link: https://www.econbiz.de/10015384033
With quarterly data from Israel and Turkey we estimate generalized impulse response functions to show that inflation has no long-run real effects on consumption, investment and the current account balance. The findings are robust even after allowing for inflation volatility obtained through...
Persistent link: https://www.econbiz.de/10005504154
In this paper we develop an intertemporal optimizing model to examine the real effects of inflation induced by monetary policy in an open developing economy with external debt and sovereign risk. The economy faces an upward sloping supply curve of debt. In our model, households require real...
Persistent link: https://www.econbiz.de/10011117742
In this paper we examine the effects of monetary policy in a two sector dependent economy. The households consume both tradable and non-tradable goods with inelastic labor supply. The economy produces both goods with labor and capital as inputs. Factors of production are mobile across sectors....
Persistent link: https://www.econbiz.de/10011208938