This paper compares the monetary policy problem in open economies with that in closed economies. It is found that the monetary policy problems in open and close

I analyze how the introduction of financial frictions can affect the trade-off between output stabilization and inflation stability and whether, in the presence

Yes, it makes a lot of sense. This paper studies how to design simple loss functions for central banks, as parsimonious approximations to social welfare. We sho

The integration of market economies is one of the most remarkable features of international economics, which has important implications for macroeconomic perfor