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KOF Working Papers, KOF Konjunkturforschungsstelle, ETH Zürich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/50814
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Schmidt, Caroline | | en_US |
| dc.date.accessioned | | 2011-11-01T13:36:34Z | | - |
| dc.date.available | | 2011-11-01T13:36:34Z | | - |
| dc.date.issued | | 2005 | | en_US |
| dc.identifier.pi | | doi:10.3929/ethz-a-004957474 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/50814 | | - |
| dc.description.abstract | | How does an unexpected domestic monetary expansion affect the foreign economy? Does it induce an increase or a decline in foreign production? In the traditional two-country Mundell-Fleming model, monetary policy has beggar-thy-neighbor effects. Yet, empirical evidence from VARs indicates that U.S. monetary policy has positive international transmission effects on both foreign (non-U.S. G-7) output and aggregate demand. In this paper, I will show that a two-country dynamic general equilibrium model with sticky prices can account for these stylized facts if we allow for international asymmetries in the price-setting behavior of firms. If U.S. firms set export prices in their own currency only (producer-currency pricing), whereas producers in the rest of the world price their exports to the U.S. in the local currency of the export market (local-currency pricing), a U.S. monetary expansion is found to increase output and aggregate demand abroad. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | KOF Zürich | | en_US |
| dc.relation.ispartofseries | | Arbeitspapiere // Konjunkturforschungsstelle, Eidgenössische Technische Hochschule Zürich 102 | | en_US |
| dc.subject.jel | | F41 | | en_US |
| dc.subject.jel | | E52 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | Local-currency pricing | | en_US |
| dc.subject.keyword | | Producer-currency pricing | | en_US |
| dc.subject.keyword | | New Open Economy Macroeconomics | | en_US |
| dc.subject.keyword | | International transmission effects of monetary policy | | en_US |
| dc.subject.stw | | Transmissionsmechanismus | | en_US |
| dc.subject.stw | | Geldpolitik | | en_US |
| dc.subject.stw | | Betriebliche Preispolitik | | en_US |
| dc.subject.stw | | Offene Volkswirtschaft | | en_US |
| dc.title | | International transmission effects of monetary policy shocks: Can asymmetric price setting explain the stylized facts? | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 484751220 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | KOF Working Papers, KOF Konjunkturforschungsstelle, ETH Zürich
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