Optimal Monetary Policy and Exchange Rate in a Small Open Economy with Unemployment
In this paper, we consider a small open economy under the New Keynesian model with unemployment of Gali (2011a, b) to discuss the design of the monetary policy. Our findings can be summarized in three parts. First, even with the existence of unemployment, the optimal policy is to minimize variance o...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Korea Institute for International Economic Policy
2014-09-01
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| Series: | East Asian Economic Review |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.2014.18.3.284 |