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Staggered Price Settings, Exchange Rates, and Monetary Policy

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dc.contributor.authorJung, Yongseung-
dc.date.accessioned2009-01-29T01:14:39Z-
dc.date.available2009-01-29T01:14:39Z-
dc.date.issued2003-
dc.identifier.citationSeoul Journal of Economics 16 (No. 4 2003): 423-460en
dc.identifier.issn1225-0279-
dc.identifier.urihttp://hdl.handle.net/10371/1304-
dc.description.abstractThis paper examines the effects of monetary policy in an optimizing two-country model in which monopolistically competitive firms set their prices in advance, so that the prices are sticky. The main findings of this paper are that there occurs an instantaneous depreciation of the exchange rates through a countercyclical response of a markup when there is a positive home monetary shock. The paper shows that the sticky price model cannot resolve the forward premium puzzle. The degree of depreciation depends on the degree of price stickiness as real variables become more volatile with stronger price stickiness. Finally, the nominal exchange and real exchange rates move very closely as in data when there is a substantial degree of price rigidity.-
dc.language.isoen-
dc.publisherSeoul Journal of Economicsen
dc.subjectcountercyclical markupen
dc.subjectExchange rateen
dc.subjectMonetary policyen
dc.titleStaggered Price Settings, Exchange Rates, and Monetary Policyen
dc.typeSNU Journalen
dc.contributor.AlternativeAuthor정용성-
Appears in Collections:
College of Social Sciences (사회과학대학)Institute of Economics Research (경제연구소)Seoul Journal of EconomicsSeoul Journal of Economics vol.16(4) (Winter 2003)
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