The role of consumption substitutability in the international transmission of monetary shocks

• 成果类型: Article
• 署名作者: Tiile, C
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• 发表日期: 2001
• 页码: 421-444
• 关键词: Marshall-Lerner-Robinson condition; beggar-thy-neighbor

摘要

This paper develops a general framework to analyze the impact of monetary shocks in an open economy, focusing on the role of the degree of substitutability between goods produced in different countries. We extend the contributions by Obstfeld and Rogoff [Obstfeld, M., Rogoff, K., 1995. Exchange rate dynamics redux. Journal of Political Economy 103, 624-659] and Corsetti and Pesenti [Corsetti, G., Pesenti, P., 1997. Welfare and Macroeconomic Interdependence, NBER Working Paper 6307] to show that the welfare impact differs across countries when the degree of substitutability between goods produced in different countries is different from the degree of substitutability between goods produced in the same country. A shock that would be beneficial in a closed economy can have an adverse 'beggar-thyself' effect in the country where it takes place, or an adverse 'beggar-thy-neighbor' effect on its neighbor. (C) 2001 Elsevier Science B.V. All rights reserved.