Price stability in open economies

被引:175
作者
Benigno, G [1 ]
Benigno, P
机构
[1] Univ London London Sch Econ & Polit Sci, London WC2A 2AE, England
[2] NYU, New York, NY USA
关键词
D O I
10.1111/1467-937X.00265
中图分类号
F [经济];
学科分类号
02 ;
摘要
This paper studies the theoretical conditions under which price stability is the optimal policy in a two-country open-economy model with imperfect competition and price stickiness. Special conditions on the levels of country-specific distortionary taxation and the intratemporal and intertemporal elasticities of substitution need to be satisfied. These restrictions apply to both cooperative and non-cooperative settings. Importantly, we show that cooperative and non-cooperative solutions do not coincide despite market completeness and producer currency pricing. We study the conditions under which quadratic approximations of single countries' welfare can be correctly evaluated by relying only on log-linear approximations of the equilibrium conditions.
引用
收藏
页码:743 / 764
页数:22
相关论文
共 30 条
[1]  
ADAO B, 2001, 201 BANC PORT
[2]  
[Anonymous], NBER MACROECONOMIC A
[3]  
BENIGNO G, 2001, 2807 CEPR
[4]  
BENIGNO G, 2001, 2757 CEPR
[5]   A simple approach to international monetary policy coordination [J].
Benigno, P .
JOURNAL OF INTERNATIONAL ECONOMICS, 2002, 57 (01) :177-196
[6]  
BENIGNO P, 2001, 2755 CEPR
[7]   International monetary policy coordination and competitive depreciation: A reevaluation [J].
Betts, C ;
Devereux, MB .
JOURNAL OF MONEY CREDIT AND BANKING, 2000, 32 (04) :722-745
[8]   STAGGERED PRICES IN A UTILITY-MAXIMIZING FRAMEWORK [J].
CALVO, GA .
JOURNAL OF MONETARY ECONOMICS, 1983, 12 (03) :383-398
[9]   The science of monetary policy:: A new keynesian perspective [J].
Clarida, R ;
Galí, J ;
Gertler, M .
JOURNAL OF ECONOMIC LITERATURE, 1999, 37 (04) :1661-1707
[10]   Optimal monetary policy in open versus closed economies:: An integrated approach [J].
Clarida, R ;
Galí, J ;
Gertler, M .
AMERICAN ECONOMIC REVIEW, 2001, 91 (02) :248-252