search query: @indexterm INTERNATIONAL ECONOMIC RELATIONS / total: 112
reference: 10 / 112
| Author: | Tuladhar, A. |
| Title: | Monetary Policy under Imperfect Capital Markets in a Small Open Economy |
| Journal: | American Economic Review
2003 : MAY, VOL. 93:2, p. 266-270 |
| Index terms: | MONETARY POLICY OPEN ECONOMY INTERNATIONAL BUSINESS INTERNATIONAL ECONOMIC RELATIONS CAPITAL MARKETS |
| Language: | eng |
| Abstract: | This paper examines the implications of alternative monetary-policy rules and the choice of instruments and targets in a small open economy with imperfect capital markets. The author compares a benchmark efficient-markets model with a monetary-targeting regime and three different inflation-targeting rules: the Taylor rule, a CPI inflation-target rule, and a non- tradable inflation-target rule. Furthermore, the author studies how sensitive the results are to varying degrees of capital-market integration. The author adopts a small open-economy setup rather than a two-country framework. In contrast to most small open-economy models, however, this paper does not assume a zero current-account balance. |
SCIMA