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

  • Mansoorian, Arman
  • Michelis, Leo

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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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 107 (2010)
Issue (Month): 2 (May)
Pages: 246-248

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Handle: RePEc:eee:ecolet:v:107:y:2010:i:2:p:246-248
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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