Monetary Policy in the Open Economy Revisited: Price Setting and Exchange Rate Flexibility

By Mick Devereux, Charles M. Engel. 2000

218 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/325216f82bd11984d646c666016a18d0d31673ce

Citations in the corpus

• Endogenous Exchange Rate Pass-through when Nominal Prices are Set in Advance (2004, unknown): “While firms’ decisions with respect to currency of pricing depend on the distribution of exchange rates and marginal costs, these distributions in 3 See for example, Betts and Devereux (1996, 2000), Devereux and Engel (2000), Tille (2000), and Lane (2001).”
• COUNTRY PORTFOLIOS IN OPEN ECONOMY MACRO‐MODELS (2011, unknown): “Yt = YK,t + YL,t, Y ∗ t = Y ∗ K,t + Y ∗ L,t (7)”
• Exchange Rate Pass-Through, Exchange Rate Volatility, and Exchange Rate Disconnect (2002, unknown): “2 See Betts and Devereux (1996, 2000) and Devereux and Engel (2000).”
• On the Causes and Effects of Exchange Rate Volatility on Economic Growth: Evidence from Ghana (2017, unknown): “…level, while some studies (see Obstfeld & Rogoff, 1998) posit that large swings in exchange rates can be costly to the domestic economy, studies such as Devereux and Engel (2003) contend that the welfare effects of exchange rate volatility are conditional upon the manner in which prices are set.”
• Monetary policy and welfare in a small open economy (2009, unknown): “Namely, Corsetti and Pesenti (2005), Devereux and Engel (2003), and Sutherland (2005) have shown that the presence of incomplete pass-through, arising from local currency pricing strategies of firms, can give rise to an international dimension of monetary policy.”
• Monetary Policy Rules for an Open Economy (2003, unknown): “In this sense, the model is close in spirit to a number of open-economy models developed at or after the time of writing by Monacelli (1999), Galí and Monacelli (1999), Ghironi (2000), Smets and Wouters (2000), Benigno and Benigno (2000) and Devereux and Engle (2000).”
• Solving for Country Portfolios in Open Economy Macro Models (2007, unknown): “It is simple to show that the budget constraint can be re-written in the following form Wt = α 0 t−1rx,t + rn,tWt−1 + Yt − Ct (4)”
• Differences in exchange rate pass-through in the euro area (2002, unknown): “This index is 1 The implications of pass-through performance for optimal monetary policy are also explored in Corsetti and Pesenti (2001), Obstfeld (2000), Devereux (2000), and Devereux and Engel (2000), among others.”
• International Monetary Policy Coordination and Financial Market Integration (2002, unknown): “where C∗ H = 1 2 C∗ μ P ∗ H P ∗ ¶−θ , C∗ F = 1 2 C∗ μ P ∗ F P ∗ ¶−θ (12)”
• Monetary Policy Rules in the Open Economy: Effects on Welfare and Business Cycles (2002, unknown): “Prior research shows that when price stickiness (in producer currency) is the only economic distortion (so that the flex-prices equilibrium of the economy is efficient), and exchange rate changes are fully and immediately passed through into import prices (ensuring that the law of one price (LOP) ho”
• Dominant Currency Paradigm (2020, unknown): “Moreover, these prices are found to be rigid for significant durations in their currency of invoicing, as documented by Gopinath and Rigobon (2008) and Fitzgerald and Haller (2012). Secondly, exporters price in markets characterized by strategic complementarities in pricing that give rise to variati”
• Self-oriented monetary policy, global financial markets and excess volatility of international capital flows (2015, unknown): “Fischer, 2014), one reason being the overwhelming predominance of the US dollar as a funding currency for global capital flows. There is substantial empirical evidence linking international capital flows to US asset prices and US monetary policy. Rey (2013), Miranda-Agrippino and Rey (2014), and Bru”