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Imperfect Competition with Separating Exchange Markets

Author

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  • Wang, Fuhmei

    (National Cheng Kung University)

Abstract

Obstfeld and Rogoff (1995) endeavour to investigate the international welfare spillovers with monopolistic competition and sticky output prices, yet in a unified exchange rate system. This paper applies their framework to the regime of dual exchange markets, generating plenty of results of policies. The particular contribution of this paper to the welfare effects of country sizes on policy lies in the cases of numerical simulations. The discussions of spillover effects, the current account dynamics, and imperfect competition to the separating exchange markets fill in the gaps on the literature. Then it takes a further step on open economy macroeconomics.

Suggested Citation

  • Wang, Fuhmei, 2002. "Imperfect Competition with Separating Exchange Markets," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 474-501.
    • Handle: RePEc:ris:integr:0204
    as

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    More about this item

    Keywords

    Imperfect Competition; Dual Exchange Markets; Welfare Effects; Population Weights.;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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