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Non-Separable Consumption-Labor Choice And The International Transmission Of Monetary Policy Shocks: A Note

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  • Christian Pierdzioch

Abstract

This paper derives in the model developed by Obstfeld and Rogoff (1995) a steady state that is stationary in the presence of monetary policy shocks. To this end, the impact of monetary policy shocks on the current account is shut off by assuming that the preferences of households exhibit a particular non-separability between consumption and labor supply. [F31, F41]

Suggested Citation

  • Christian Pierdzioch, 2001. "Non-Separable Consumption-Labor Choice And The International Transmission Of Monetary Policy Shocks: A Note," International Economic Journal, Taylor & Francis Journals, vol. 17(2), pages 55-64.
    • Handle: RePEc:taf:intecj:v:17:y:2001:i:2:p:55-64
    DOI: 10.1080/10168730300080012
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    Cited by:

    1. Ghironi, Fabio, 2008. "The role of net foreign assets in a New Keynesian small open economy model," Journal of Economic Dynamics and Control, Elsevier, vol. 32(6), pages 1780-1811, June.

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