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Optimal Devaluations

  • Juan Pablo Nicolini
  • Constantino Hevia

We analyze optimal ï¬scal,monetary and exchange rate policy in a simple small open econonomy model with price setting frictions.We perform our analysis in the tradition of optimal dynamic Ramsey problems.We characterize optimal allocations and the government policies that implement the optimal allocation.We analyze optimal ï¬scal,monetary and exchange rate policy in a simple small open econonomy model with price setting frictions.We perform our analysis in the tradition of optimal dynamic Ramsey prob- lems.We characterize optimal allocations and the government policies that implement the optimal allocation

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Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 337.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:latm04:337
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