Inspecting Monetary Policy Rules in a Small Open Economy with Financial Frictions
In this paper, we address how the monetary authority should react to financial market status and exchange rates movements in a small open economy New Keynesian model with financial frictions due to asymmetric information between savers and borrowers. We show that the small economy with financial fri...
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| Format: | Article |
| Language: | English |
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Korea Institute for International Economic Policy
2023-06-01
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| Series: | East Asian Economic Review |
| Subjects: |