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The Liquidity Effect in a Small Open Economy Model Author info | Abstract | Publisher info | Download info | Related research | Statistics Javier Andrés
J. David López-Salido
Javier Vallés
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In this paper we construct a dynamic stochastic general equilibrium model for a small open economy allowing for perfect capital mobility. The model incorporates price rigidities in monopolistically competitive goods and labor markets and real rigidities in the form of capital adjustment costs. The model matches some nominal and real business cycle features observed in European economies and produces a significant output response to monetary policy shocks.
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Paper provided by Banco de España in its series Banco de España Working Papers with number
9902.
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Length: 45 pages
Date of creation: 1999Date of revision:
Handle: RePEc:bde:wpaper:9902Contact details of provider: Email: Web page: http://www.bde.es/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (María D. González. Electronic Dissemination of Information Unit. Research Department. Banco de España).
Keywords: GENERAL EQUILIBRIUM ; STOCHASTIC MODELS ; MACROECONOMICS ; Other versions of this item:
Find related papers by JEL classification: F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General C60 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - General
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Eduardo L. Giménez & José María Martín-Moreno, .
"Title: Monetary shocks and business cicle in the Spanish economy ,"
Studies on the Spanish Economy
43, FEDEA.
[Downloadable!]
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