dc.contributor.author | Cooke, DK | |
dc.date.accessioned | 2017-06-27T09:18:08Z | |
dc.date.issued | 2015-03-12 | |
dc.description.abstract | This paper studies optimal monetary policy in an open economy with firm heterogeneity and monopolistic competition. I consider a two-country dynamic general equilibrium model where firms make decisions to enter and exit the domestic and export markets. I show that endogenous export participation creates an incentive for policymakers to set high interest rates. This leads to high long-run inflation. Firm entry magnifies the welfare cost of inflation generating large gains to international monetary cooperation. | en_GB |
dc.identifier.citation | Vol. 21, pp. 72 - 88 | en_GB |
dc.identifier.doi | 10.1016/j.red.2015.03.003 | |
dc.identifier.uri | http://hdl.handle.net/10871/28195 | |
dc.language.iso | en | en_GB |
dc.publisher | Elsevier for Society for Economic Dynamics | en_GB |
dc.relation.replaces | 10036/4374 | |
dc.relation.replaces | http://hdl.handle.net/10036/4374 | |
dc.rights | © 2015 Elsevier Inc. All rights reserved. | en_GB |
dc.subject | Optimal monetary policy | en_GB |
dc.subject | Export participation | en_GB |
dc.subject | Working capital | en_GB |
dc.title | Optimal monetary policy with endogenous export participation (article) | en_GB |
dc.type | Article | en_GB |
dc.date.available | 2017-06-27T09:18:08Z | |
dc.identifier.issn | 1094-2025 | |
pubs.merge-from | 10036/4374 | |
pubs.merge-from | http://hdl.handle.net/10036/4374 | |
dc.description | This is the author accepted manuscript. The final version is available from Elsevier via the DOI in this record. | en_GB |
dc.identifier.journal | Review of Economic Dynamics | en_GB |