Financial market frictions, monetary policy, and capital accumulation in a small open economy
成果类型：
Article; Proceedings Paper
署名作者：
Huybens, E; Smith, BD
署名单位：
Instituto Tecnologico Autonomo de Mexico; University of Texas System; University of Texas Austin
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1997.2372
发表日期：
1998
页码：
353-400
关键词：
摘要：
We consider a small open economy with a costly state verification problem and binding reserve requirements. The presence of these frictions leads to the existence of two steady states with credit rationing. An increase in the money growth rate, the world interest rate or reserve requirements raises (lowers) GDP in the high (low) activity steady state. However, sufficiently large increases in money growth or the world interest rate can transform the high activity steady state from a sink to a source. The model also delivers prescriptions for restoring the stability of this steady state in such an eventuality. (C) 1998 Academic Press.