Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/17818| Title: | Home-Product Bias, Capital Mobility, and the Effects of Monetary Policy Shocks in Open Economies |
| Keywords: | F41 F36 F32 ddc:330 Monetary Policy Capital mobility Home-product bias Geldpolitik Schock Makroökonomischer Einfluß Internationale Kapitalmobilität Konsumentenverhalten Offene Volkswirtschaft Neue Makrooekonomik offener Volkswirtschaften Theorie home bias |
| 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 effects of monetary policy in open economies. The model shows that the difference between the short-run output effects of monetary policy shocks in a world of high capital mobility and those in a world of low capital mobility decreases if households have a home-product bias in preferences. This result implies that, in contrast to conventional wisdom derived from the textbook Mundell-Fleming model, the empirically observed integration of international financial markets need not result in a significant change in the propagation of monetary policy shocks if households have a strong bias for consuming home products. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/17818 |
| Other Identifiers: | http://hdl.handle.net/10419/17818 ppn:362664846 |
| 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.