Optimal monetary policy in a small, open economy: a general-equilibrium analysis

The two central issues in monetary policy are separated by time horizon. The first relates to the short run: what is the appropriate monetary policy across the business cycle? The second relates to the long run: waht is the optimal long-run rate of inflation? This paper explores these classic issues...

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Auteurs principaux: Carlstrom, Charles T., Fuerst, Timothy S.
Format: Artículo
Langue:eng
Publié: Banco Central de Chile 2019
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Accès en ligne:https://hdl.handle.net/20.500.12580/3658
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Résumé:The two central issues in monetary policy are separated by time horizon. The first relates to the short run: what is the appropriate monetary policy across the business cycle? The second relates to the long run: waht is the optimal long-run rate of inflation? This paper explores these classic issues from the ventage point of a small, open economy.