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Comments on ‘Monetary Policy in Economic Crises: A Simple Model of Policy with External Financial Constraints’ by Devereux and Poon

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  • Yongseung Jung

Abstract

The recent financial crises have generated interest in the design of optimal monetary policy rules not only for the developed economies, but also for the emerging economies. In particular, many economists have argued that economic models should take financial market frictions more seriously to analyze the propagation of external shocks and to design the optimal monetary policy rules at normal times as well as at economic crisis. Devereux and Poon address this issue by employing a tractable and simple small open economy model.

Suggested Citation

  • Yongseung Jung, 2011. "Comments on ‘Monetary Policy in Economic Crises: A Simple Model of Policy with External Financial Constraints’ by Devereux and Poon," International Economic Journal, Taylor & Francis Journals, vol. 25(4), pages 713-716, December.
    • Handle: RePEc:taf:intecj:v:25:y:2011:i:4:p:713-716
    DOI: 10.1080/10168737.2011.636631
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