Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/43195 
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dc.contributor.authorCwik, Tobias J.en
dc.contributor.authorMüller, Gernot J.en
dc.contributor.authorWolters, Maik H.en
dc.date.accessioned2009-05-06-
dc.date.accessioned2010-12-15T09:21:33Z-
dc.date.available2010-12-15T09:21:33Z-
dc.date.issued2008-
dc.identifier.piurn:nbn:de:hebis:30-57676en
dc.identifier.urihttp://hdl.handle.net/10419/43195-
dc.description.abstractThis paper explores the role of trade integrationor opennessfor monetary policy transmission in a medium-scale New Keynesian model. Allowing for strategic complementarities in price-setting, we highlight a new dimension of the exchange rate channel by which monetary policy directly impacts domestic inflation. Although the strength of this effect increases with economic openness, it also requires that import prices respond to exchange rate changes. In this case domestic producers find it optimal to adjust their prices to exchange rate changes which alter the domestic currency price of their foreign competitors. We pin down key parameters of the model by matching impulse responses obtained from a vector autoregression on U.S. time series relative to an aggregate of industrialized countries. While we find evidence for strong complementarities, exchange rate pass-through is limited. Openness has therefore little bearing on monetary transmission in the estimated model.en
dc.language.isoengen
dc.publisher|aGoethe University Frankfurt, Center for Financial Studies (CFS) |cFrankfurt a. M.en
dc.relation.ispartofseries|aCFS Working Paper |x2008/29en
dc.subject.jelF41en
dc.subject.jelF42en
dc.subject.jelE52en
dc.subject.ddc330en
dc.subject.keywordMonetary Policy Transmissionen
dc.subject.keywordOpen Economyen
dc.subject.keywordTrade Integrationen
dc.subject.keywordExchange Rate Channelen
dc.subject.keywordStrategic Complementarityen
dc.subject.keywordExchange Rate Pass-Throughen
dc.subject.stwTransmissionsmechanismusen
dc.subject.stwExchange Rate Pass-Throughen
dc.subject.stwOffene Volkswirtschaften
dc.subject.stwUngleichgewichtstheorieen
dc.subject.stwTheorieen
dc.titleDoes trade integration alter monetary policy transmission?-
dc.typeWorking Paperen
dc.identifier.ppn599230355en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:zbw:cfswop:200829en

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