Chang, Jui-Chuan Della; Huang, Chen-Jui; Chien, I-Che - In: Emerging Markets Finance and Trade 50 (2014) 2, pp. 138-152
This paper deepens our understanding of the importance of the cost channel of monetary policy, where inflation adjusts with a firm's marginal cost of working capital. A model extended for a small, open economy with financial frictions is proposed and examined with data from Taiwan. The cost...