Publication
Jan 2013
According to the authors of this report, available evidence supports the view that growth is faster in more open economies. In order to analyze the implications of openness and growth on determinacy and learnability of worldwide rational expectations equilibria they develop a two-country New Keynesian model with growth. They analyze these issues for contemporaneous data and expectations-based monetary policy rules. The results highlight how growth matters for the overall effect of opening an economy to more trade.
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English (PDF, 31 pages, 258 KB) |
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Author | Eric Schaling, Mewael F. Tesfaselassie |
Series | Kiel Institute Working Papers |
Issue | 1818 |
Publisher | Kiel Institute for the World Economy |
Copyright | © 2013 Kiel Institute for the World Economy |