Into the Mussa Puzzle: Monetary Policy Regimes and the Real Exchange Rate in a Small Open Economy

By Tommaso Monacelli. 2004

176 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/a004305ed54c4a7ed6fc84883a6e5ee537580dfb

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. David E. Cook
2. Ester Faia
3. D. Mukhin
4. Oleg Itskhoki
5. Balázs Égert
6. David Cook
7. W. Choi
8. Tommaso Monacelli

In Finance

1. David E. Cook
2. Ester Faia
3. Oleg Itskhoki
4. D. Mukhin
5. David Cook
6. W. Choi
7. Tommaso Monacelli
8. Balázs Égert

Citations in the corpus

• Monetary Policy in a Low Pass-Through Environment (2005, unknown): “By using equation ( 28 ) and noticing that st = σ”
• Practical Model-Based Monetary Policy Analysis: A How-To Guide (2006, background): “5 See Gali and Monacelli (2002) and Monacelli (2004) for micro-founded models along these lines.”
• Monetary Policy Rules in the Open Economy: Effects on Welfare and Business Cycles (2002, unknown): “…(2002), Dedola and Leduc (2001), Duarte and Stockman (2001), Erceg and Levin (2001), Faia (2001), Ghironi and Rebucci (2001), Hairault et al. (2001), Kollmann (2001a, b; 2002), McCallum and Nelson (1999, 2000), Monacelli (1999), Schmitt-Groh!e and Uribe (2001a), and Smets and Wouters (2000, 2001).”
• Liability Dollarization and the Bank Balance Sheet Channel (2002, background): “As the traded goods' price is equivalent to the exchange rate, this monetary policy is equivalent to a °xed exchange rate and is referred to as the PEG speci°cation (see Monacelli [38]).”
• Equilibrium Exchange Rates in Transition Economies: Taking Stock of the Issues (2006, unknown): “For instance, Mussa (1986) observed a strong correlation between nominal and real exchange rates for industrialized countries during the post-1973 floating period, implying that overall real exchange rate movements are dominated by changes in the real exchange rate of the open sector.”
• Monetary policy in emerging markets: Can liability dollarization explain contractionary devaluations? (2004, methodology): “Monacelli [56] shows that a positive coefficient on exchange rate depreciation can be used to model a managed floating exchange rate and that as ξ −→ ∞, the interest rate rule converges to a fixed exchange rate rule.”
• Exchange Rate Disconnect in General Equilibrium (2017, background): “66 under the peg relative to a nearly perfect correlation under the oat (Monacelli 2004).”
• Real Exchange Rates in Small Open OECD and Transition Economies: Comparing Apples with Oranges? (2006, background): “7 6 The empirical literature has been long stressing that nominal exchange rates and thus the real exchange rate of the open sector dominate changes in the overall r al exchange rate of industrialized countries (Mussa, 1986; Engel, 1993, 1999; and Monacelli, 2004).”
• Optimal Monetary Policy in a Small Open Economy with Home Bias (2008, background): “From (42) we infer that, in the constrained-e¢ cient allocation, variations in international relative prices are the only source of variation in ce t .”
• A Microfounded Sectoral Model for Open Economies (2007, background): “…T,V NΨ(Zmt )Kmt i −WtLt − hP m=FT,FN,V T,V NR m t Kmt i + StEt h Q̂f,t,t+1Bf,t+1 i − StBf,t − ³ Et h Q̂∗h,t,t+1B ∗ h,t+1 i −B∗h,t ´ − Bt + PCt (G)Gt, (66) where e.g. the aggregate nominal consumption is defined as PCt Ct ≡ R 1 0 PCt (i)Ct(i)di, and so on (see e.g. Galí and Monacelli (2004)).”