International Policy Coordination and Simple Monetary Policy Rules

International Policy Coordination and Simple Monetary Policy Rules
This paper studies the optimal design of monetary policy in an optimizing two-country sticky price model. We suppose that the production sequence of final consumption goods stretches across both countries and is associated with vertical trade. Prices of final consumption goods are sticky in the consumer's currency. Pursuing an inward-looking... READ MORE...

Publication date: June 2006
ISBN 9781451864243
$15.00

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