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Monetary policy in a small open economy with durable goods and differing cash-in-advance constraints

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  • Mansoorian, Arman
  • Michelis, Leo

Abstract

We consider the effects of inflation in a small open economy when expenditures on non-durables are more heavily financed with money than expenditures on durables. The distinctions between non-durables and durables, and asymmetric cash-in-advance constraints give rise to important dynamics.

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  • Mansoorian, Arman & Michelis, Leo, 2010. "Monetary policy in a small open economy with durable goods and differing cash-in-advance constraints," Economics Letters, Elsevier, vol. 107(2), pages 246-248, May.
    • Handle: RePEc:eee:ecolet:v:107:y:2010:i:2:p:246-248
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    Cited by:

    1. Yanagihara, Mitsuyoshi & Lu, Chen, 2013. "Cash-in-advance constraint, optimal monetary policy, and human capital accumulation," Research in Economics, Elsevier, vol. 67(3), pages 278-288.
    2. Arman Mansoorian, 2014. "On the Monetary Approach to the Balance of Payments," Open Economies Review, Springer, vol. 25(4), pages 721-737, September.

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