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Dynamic General Equilibrium Analysis: The Open Economy Dimension

  • Philip R. Lane
  • Giovanni Ganelli

This paper discusses some key issues in the application of dynamic general equilibrium analysis to open economy modelling. In the context of the new open economy macroeconomics paradigm, we focus on: (i) the currency denomination of sticky prices; (ii) the role of the current account and net foreign assets; and (iii) the impact of fiscal policy.

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File URL: http://www.tcd.ie/Economics/TEP/2002_papers/tepno12PL22.PDF
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Paper provided by Trinity College Dublin, Department of Economics in its series Trinity Economics Papers with number 200212.

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Date of creation: 2002
Handle: RePEc:tcd:tcduee:200212
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