Monetary Policy and Exchange Rate Volatility in a Small Open Economy

We lay out a small open economy version of the Calvo sticky price model, and show how the equilibrium dynamics can be reduced to a simple representation in domestic inflation and the output gap. We use the resulting framework to analyse the macroeconomic implications of three alternative rule-based...

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Bibliographic details
Volume: 72
Main Author: Gali, J
Monacelli, T
Format: Journal Article
Language: English
Place of publication: OXFORD Wiley-Blackwell 01.07.2005
Review of Economic Studies Ltd
OXFORD UNIV PRESS
published in: The Review of economic studies Vol. 72; no. 3; pp. 707 - 734
ORCID: 0000-0003-4950-7462
Data of publication: 2005-07
ISSN: 0034-6527
1467-937X
EISSN: 1467-937X
Discipline: Economics
Subjects:
E52
F31
F41
Online Access: Fulltext
Database: Istex
Web of Knowledge
Social Sciences Citation Index
Web of Science
Web of Science - Social Sciences Citation Index - 2005
CrossRef
Database information Databases - DBIS