Monetary Policy in a Small Open Economy with Credit Goods Production
Download or Read eBook Monetary Policy in a Small Open Economy with Credit Goods Production PDF written by Mr.Jorge A. Chan-Lau and published by International Monetary Fund. This book was released on 1998-10-01 with total page 20 pages. Available in PDF, EPUB and Kindle.
Author | : Mr.Jorge A. Chan-Lau |
Publisher | : International Monetary Fund |
Total Pages | : 20 |
Release | : 1998-10-01 |
ISBN-10 | : 9781451922448 |
ISBN-13 | : 1451922442 |
Rating | : 4/5 (48 Downloads) |
Book Synopsis Monetary Policy in a Small Open Economy with Credit Goods Production by : Mr.Jorge A. Chan-Lau
Book excerpt: The paper analyzes the effects of monetary policy in a dynamic model of a small open economy with cash and credit goods production, where government consumption is financed by seignorage. It shows that the interrelationships between the growth rate of the monetary aggregate and the technological properties of the economy have an important bearing on the existence and uniqueness of equilibrium, the optimal inflation rate, and the occurrence of explosive hyperinflations. In consequence, the paper concludes that monetary policy does matter in the long run.