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Monetary Policy, Determinacy, and Learnability in the Open Economy Author info | Abstract | Publisher info | Download info | Related research | Statistics Eric Schaling
James Bullard
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We study how determinacy and learnability of global rational expectations equilibrium may be affected by monetary policy in a simple, two country New Keynesian framework. We seek to understand how monetary policy choices may interact across borders to help or hinder the creation of a unique REE worldwide which can be learned by market participants. We find that open economy considerations may alter conditions for determinacy and learnability relative to closed economy analyses, and that new concerns can arise in the analysis of classic topics such as the desirability of exchange rate targeting, monetary policy cooperation, and monetary union
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Paper provided by Society for Computational Economics in its series Computing in Economics and Finance 2005 with number
362.
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Date of creation: 11 Nov 2005Date of revision:
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Paper James Bullard & Eric Schaling, 2006.
"Monetary policy, determinacy, and learnability in the open economy ,"
Working Paper Series
611, European Central Bank.
[Downloadable!] Bullard, James & Schaling, Eric, 2005.
"Monetary policy, determinancy, and learnability in the open economy ,"
Discussion Paper
116, Tilburg University, Center for Economic Research.
[Downloadable!] Find related papers by JEL classification: E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.:
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"Endogenous Currency of Price Setting in a Dynamic Open Economy Model ,"
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Bask, Mikael, 2007.
"Optimal monetary policy under heterogeneity in currency trade ,"
Research Discussion Papers
21/2007, Bank of Finland.
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Bask, Mikael & Selander, Carina, 2007.
"Robust Taylor rules in an open economy with heterogeneous expectations and least squares learning ,"
Research Discussion Papers
6/2007, Bank of Finland.
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James B. Bullard & Aarti Singh, 2007.
"Worldwide macroeconomic stability and monetary policy rules ,"
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2006-040, Federal Reserve Bank of St. Louis.
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Bask, Mikael, 2007.
"Instrument rules in monetary policy under heterogeneity in currency trade ,"
Research Discussion Papers
22/2007, Bank of Finland.
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Eijffinger, Sylvester C W & Schaling, Eric & Tesfaselassie, Mewael F., 2006.
"Learning About the Term Structure and Optimal Rules for Inflation Targeting ,"
CEPR Discussion Papers
5896, C.E.P.R. Discussion Papers.
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Other versions:
Tesfaselassie, Mewael F. & Schaling, Eric & Eijffinger, Sylvester, 2006.
"Learning about the term structure and optimal rules for inflation targeting ,"
Discussion Paper
88, Tilburg University, Center for Economic Research.
[Downloadable!] Tesfaselassie, M.F. & Schaling, E. & Eijffinger, S.C.W., 2006.
"Learning About the Term Structure and Optimal Rules for Inflation Targeting ,"
Research Paper
ERS-2006-058-F&A Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
[Downloadable!]
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