Specialization, the Terms of Trade, and the International Transmission of Monetary Policies
The Ricardian model with a continuum of goods is extended to a cash-in-advance environment with variable labor supply, which allows domestic monetary policy to influence real activity through an inflation tax channel and to be internationally transmitted to real activity abroad. The continuum-of-goods feature of the model allows for the international transmission of monetary policies to occur at both intensive and extensive margins. At the intensive margin monetary policy is internationally transmitted via its impact on relative employment levels at home and abroad. This in turn alters the terms of trade. thereby affecting the range of commodities in which the home country has a comparative advantage. Monetary policies are thus transmitted at the extensive margin by influencing international patterns of trade and specialization.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 25 (1992)
Issue (Month): 4 (November)
|Contact details of provider:|| Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office C.P. 35006, 1221 Fleury Est Montréal, Québec, Canada H2C 3K4|
Web page: http://economics.ca/cje/
More information through EDIRC
|Order Information:|| Web: http://economics.ca/en/membership.php Email: |
When requesting a correction, please mention this item's handle: RePEc:cje:issued:v:25:y:1992:i:4:p:884-900. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Prof. Werner Antweiler)
If references are entirely missing, you can add them using this form.