Optimal Monetary Policy in a Small Open Economy with Home Bias

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How researchers see this paper

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Currency Misalignments and Optimal Monetary Policy: A Reexamination (2011, unknown): “Faia and Monacelli (2008) examine optimal monetary policy in a small open economy model with home bias, using a Ramsey-style analysis.”
Monetary policy and welfare in a small open economy (2009, background): “…efficiency condition (12) and the decentralized flexible price allocation (13) can be written as (1 ) (Y et Gt) = " t (Y e t ) ; (14) and 1 t (Y Flext Gt) = " t Y Flext : (15) 22In a subsequent work, Faia and Monacelli (2008) follow a similar approach and characterize the optimal Ramsey allocation.”
Self-oriented monetary policy, global financial markets and excess volatility of international capital flows (2015, unknown): “It is well known that openness, in general, affects the optimal monetary policy response to shocks (e.g. Corsetti et al., 2010, Faia and Monacelli, 2008, Devereux and Sutherland, 2007, Devereux and Engel, 2003 Lombardo and Ravenna, 2014 and Kolasa and Lombardo (2014)).”