EconStor >
Freie Universität Berlin >
Fachbereich Wirtschaftswissenschaft >
Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/36679
  
Title:Beggar-thyself or beggar-thy-neighbour? The welfare effects of monetary policy PDF Logo
Authors:Tervala, Juha
Engler, Philipp
Issue Date:2010
Series/Report no.:School of Business & Economics Discussion Paper 2010/6
Abstract:This paper examines whether monetary expansion is a beggar-thyself or beggar-thy-neighbour policy. Obstfeld and Rogoff (1995) show that monetary expansion under producer currency pricing increases domestic and foreign overall welfare, in cases where the crosscountry substitutability is high. If the cross-country substitutability is low, then monetary expansion is a beggar-thyself policy that reduces domestic welfare and increases foreign welfare (Corsetti & Pesenti 2001; Tille 2001). In this paper, we will show that regardless of whether the cross-country substitutability is high or low, monetary expansion is always a beggar-thyself policy in the short run.
Subjects:Open economy macroeconomics
monetary policy
beggar-thyself
beggar-thy-neighbour
JEL:E32
E52
F30
F41
ISBN:978-3-941240-18-6
Appears in Collections:Diskussionsbeiträge, FB Wirtschaftswissenschaft, FU Berlin

Files in This Item:
File Description SizeFormat
625891414.pdf278,38 kBAdobe PDF
No. of Downloads:
last Month last 3 Month total
Show full item record
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/36679

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.