Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/50901
Authors: 
Schmidt, Caroline
Year of Publication: 
2006
Series/Report no.: 
Arbeitspapiere // Konjunkturforschungsstelle, Eidgenössische Technische Hochschule Zürich 144
Abstract: 
In this paper, it is argued that the observed high positive correlation between national savings and investment which is found in the data can in part be explained by shocks to monetary policy. This hypothesis, which is established by reviewing some empirical findings, is tested in a two-country DSGE-model framework in the tradition of the New Open Economy Macroeconomics. The simulation results obtained support the idea that shocks to monetary policy might contribute to the explanation of the Feldstein-Horioka puzzle.
Subjects: 
Savings Investment Correlations
Monetary Policy Shocks
Feldstein-Horioka Puzzle
Local-currency pricing
JEL: 
E2
E52
F32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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