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

By Michael B. Devereux, Charles M. Engel. 2003

233 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/54b41c804a402abbd1c40b67ab6c4d0e9db669cb

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Citations in the corpus

Dominant Currency Paradigm (2020, unknown): “In the original works of Betts and Devereux (2000) and Devereux and Engel (2003), prices are instead assumed to be sticky in the currency of the destination market, so called ‘local currency pricing’ (LCP ).”
The International Price System (2015, methodology): “However, the relative stability of local currency prices to exchange rate changes motivated important work using the alternative assumption of LCP, as in Devereux and Engel (2003).”
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)).”
Fiscal Policy, the Real Exchange Rate and Traded Goods (2010, unknown): “Also, from (12) and (14), ~ed ¼ ed ð~b bÞuy and, from (16), cov(~ed , eyÞ ¼ ð~b bÞr2ey=ð1 bcÞ 2 0: 12 See, among many others, Corsetti and Pesenti (2001), Devereux and Engel (2003), Galı́ and Monacelli (2005).”
An Optimum-Currency-Area Odyssey (2009, background): “With regard to the third issue, Devereux and Engel (2003) , Duarte (2003), and Corsetti”
COUNTRY PORTFOLIOS IN OPEN ECONOMY MACRO‐MODELS (2011, methodology): “L,t ( 7 ) where YK,t and Y ∗ K,t represent ‘capital income’ and YL,t and Y ∗”
International Monetary Policy Coordination and Financial Market Integration (2002, unknown): “As already emphasised, Benigno (2002), Canzoneri, Cumby and Diba (2001), Clarida, Gali and Gertler (2002), Corsetti and Pesenti (2001b), Devereux and Engel (2003) and Obstfeld and Rogoff (2002) all analyse models where the elasticity of substitution between home and foreign goods is unity.”
Currency Misalignments and Optimal Monetary Policy: A Reexamination (2011, unknown): “2. Devereux and Engel (2003) explicitly examine optimal monetary policy in a two-country framework with LCP.”
Optimal Monetary Policy in a Small Open Economy with Home Bias (2008, methodology): “This di¤ers from the popular Friedman (1956) prescription, derived for instance in Devereux and Engel (2003), according to which, in the presence of price stickiness, 1The so-called New Open Economy Macroeconomics literature has grown rapidly in the last few years.”
A new look at pass-through (2008, background): “Betts and Devereux (2000) and Devereux and Engel (2003) note that the optimal monetary policy and exchange rate regime in Obstfeld and Rogoff new open economy models is different if import prices are sticky in the price of the consumer not the producer.”
Monetary policy and uncertainty in an empirical small open-economy model (2010, background): “For instance, Devereux and Engel (2003) show in a two country model with local currency pricing that optimal monetary policy stipulates stabilization of the nominal exchange rate.1 Similarly, Monacelli (2003) shows that local currency pricing induces a trade-o¤ in stabilizing domestic price in…”