This paper explores the implications of international location of production for the optimal design of monetary policy in a framework that allows for price discrimination across international markets. By introducing multinational production in a dynamic open economy, the paper shows that optimal monetary rules do not react to foreign cyclical conditions. The paper further shows that non-cooperative monetary rules cannot restore the flexible price allocation while international monetary cooperation can do so.

Cavallari, L. (2004). Optimal monetary rules and internationalized production. INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, 9, 175-186 [10.1002/ijfe.240].

Optimal monetary rules and internationalized production

CAVALLARI, Lilia
2004

Abstract

This paper explores the implications of international location of production for the optimal design of monetary policy in a framework that allows for price discrimination across international markets. By introducing multinational production in a dynamic open economy, the paper shows that optimal monetary rules do not react to foreign cyclical conditions. The paper further shows that non-cooperative monetary rules cannot restore the flexible price allocation while international monetary cooperation can do so.
Cavallari, L. (2004). Optimal monetary rules and internationalized production. INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, 9, 175-186 [10.1002/ijfe.240].
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/269256
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 6
  • ???jsp.display-item.citation.isi??? 7
social impact