search query: @indexterm OPEN ECONOMY / total: 204
reference: 8 / 204
| Author: | Bjornland, H.C. |
| Title: | Monetary policy and exchange rate interactions in a small open economy |
| Journal: | Scandinavian Journal of Economics
2008 : VOL. 110:1, p. 197-221 |
| Index terms: | open economy monetary policy models Scandinavia Nordic countries Norway |
| Language: | eng |
| Abstract: | This study analyzes the transmission mechanisms of monetary policy (henceforth as: mon-pol.) in a small open economy like Norway through structural VARs. By imposing a long-run neutrality restriction on the real exchange rate (here as: exc-rate), there is found considerable interdependence btw. mon-pol. and the exc-rate. Especially, following a contractionary mon-pol. shock, the real exc-rate immediately appreciates, after which it gradually depreciates back to the baseline. The results are found to be consistent with findings from an "event study". |
SCIMA