Fujisaki, Seiya (2012): Taylor rules and equilibrium determinacy in a two-country model with non-traded goods.
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We analyze a relation between interest rate controls and equilibrium determinacy using a two-country model featuring traded and non-traded goods. In addition, parameters of preference and production may differ between the two countries. We find that macroeconomic stability strongly depends on such heterogeneity including monetary policy, and that it is easier to generate determinate equilibrium under liberalization of the economy.
|Item Type:||MPRA Paper|
|Original Title:||Taylor rules and equilibrium determinacy in a two-country model with non-traded goods|
|Keywords:||heterogeneity; Taylor rule; open economy; non-traded goods; equilibrium determinacy|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F41 - Open Economy Macroeconomics
|Depositing User:||Seiya Fujisaki|
|Date Deposited:||12. Jul 2012 02:24|
|Last Modified:||13. Feb 2013 13:58|
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