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In this paper a Dynamic Stochastic General Equilibrium model in the New Keynesian tradition is developed for two open economies, namely: an advanced and an emerging one. A critical distinction between the economies under study rests on the location of financial frictions: while imperfections will af...
|a A model about the interaction of the monetary policy in an advanced and an emerging economy /
|c Angel Entrique Neder, Agostina María Brinatti, Martín Ezequiel Almuzara.
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|a Córdoba, Argentina :
|b [Universidad Nacional de Córdoba. Facultad de Ciencias Económicas]
|c 2011
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|a 25 h. :
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|a Paper presentado al Arnoldshain Seminar XII "Globalization, development and human capital" September 23 - 26, 2014, University of Valencia and University Jaume I in Villa Real, Spain.
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|a Bibliografía: h. 24-25.
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|a In this paper a Dynamic Stochastic General Equilibrium model in the New Keynesian tradition is developed for two open economies, namely: an advanced and an emerging one. A critical distinction between the economies under study rests on the location of financial frictions: while imperfections will affect the domestic credit market in the advanced economy, it is the foreign exhange market that will be subject to frictions in the emerging one. There is also a distinction related to the monetary policy carried out by each Central Bank: the monetary authority in the developed economy directs its policy to monitor the condition of its own financial sector, while the Central Bank in emerging economy focus its efforts on regulating the evolution of external payments and the exchange rate.
