CAPITAL CONTROLS, MONETARY POLICY, AND BALANCE SHEETS IN A SMALL OPEN ECONOMY.
We develop a small open economy, New Keynesian model that incorporates a financial accelerator in combination with liability dollarization. Applying a Ramsey‐type analysis, we compare the welfare implications of an optimal monetary policy under flexible exchange rates and an optimal capital control...
| Publicado en: | Economic Inquiry Vol. 56; no. 2; pp. 859 - 875 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Apr2018
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=128133106&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 128133106 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Apr2018 vid: 56 iid: 2 pid: 480 pub: Wiley-Blackwell artinfo: ui: 128133106 10.1111/ecin.12544 ppf: 859 ppct: 16 formats: fmt: – @attributes: type: T – @attributes: type: P size: 239KB tig: atl: CAPITAL CONTROLS, MONETARY POLICY, AND BALANCE SHEETS IN A SMALL OPEN ECONOMY. aug: au: Kitano, Shigeto Takaku, Kenya affil: Professor, Research Institute for Economics and Business Administration, Kobe University, Kobe, 657‐8501, Japan Associate Professor, Faculty of International Studies, Hiroshima City University, Hiroshima, 731‐3194, Japan su: Capital movements Monetary policy Financial statements Free trade Foreign exchange rates sug: subj: Capital movements Monetary policy Financial statements Free trade Foreign exchange rates ab: We develop a small open economy, New Keynesian model that incorporates a financial accelerator in combination with liability dollarization. Applying a Ramsey‐type analysis, we compare the welfare implications of an optimal monetary policy under flexible exchange rates and an optimal capital control policy under fixed exchange rates. In an economy without the financial accelerator, an optimal monetary policy under flexible exchange rates is superior to an optimal capital control policy under fixed exchange rates. In contrast, in an economy with the financial accelerator, an optimal capital control under fixed exchange rates yields higher welfare than an optimal monetary policy under flexible exchange rates.(<italic>JEL</italic> E44, E52, F32, F38, F41) pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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