Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/17777| Title: | Capital Mobility, Consumption Substitutability, and the Effectiveness of Monetary Policy in Open Economies |
| Keywords: | F41 F32 F36 ddc:330 Monetary policy Capital mobility Internationale Kapitalmobilität Geldpolitik Wirtschaftspolitische Wirkungsanalyse Produktsubstitution Elastizitätsbedingung Zwei-Länder-Modell Offene Volkswirtschaft Dynamisches Gleichgewicht Theorie |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | This paper uses a dynamic general equilibrium two-country optimizing model to analyze the consequences of international capital mobility for the effectiveness of monetary policy in open economies. The model shows that the substitutability of goods produced in different countries plays a central role for the impact of international capital mobility on the effectiveness of monetary policy. Paralleling the results of the traditional Mundell-Fleming model, a higher degree of international capital mobility increases the effectiveness of monetary policy only if the Marshall-Lerner condition, which is linked to the cross-country substitutability of goods, holds. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/17777 |
| Other Identifiers: | http://hdl.handle.net/10419/17777 ppn:349323186 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.