Monetary policy transmission when there are nontraded goods Public Deposited

Creator Series Issue number
  • 481
Date Created
  • 1991-09
Abstract
  • This paper investigates the effects of changes in a country's monetary policies on its economy and the welfare of its citizens and those of other countries. Each country is populated by two-period lived overlapping agents who reside in either a home service sector or a world-traded good sector. Policy effects are transmitted through changes in the real interest rate, relative prices, and price levels. Welfare effects are sometimes dominated by relative price movements and can thus be opposite of those found in one-good models. Simulation of dynamic paths also reveals that welfare effects for some types of agents reverse between those born in immediate post-shock periods and those born later.

Subject (JEL) Keyword Alternative title
  • Real effects of monetary policy in a world economy / Preston J. Miller, Richard M. Todd.
Contributor Date Modified
  • 03/21/2018
Publisher
  • Federal Reserve Bank of Minneapolis. Research Division.
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