Beyond Competitive Devaluations: The Monetary Dimensions of Comparative Advantage

• 成果类型: Article
• 署名作者: Bergin, Paul R.; Corsetti, Giancarlo
• 署名单位: University of California System; University of California Davis; University of Cambridge
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20160094
• 发表日期: 2020
• 页码: 246-286
• 关键词: trade; pattern; POLICY; OIL; volatility; welfare

摘要

Motivated by the long-standing debate on competitive devaluation, we propose a new perspective on how monetary and exchange rate policies can contribute to a country's international competitiveness. We refocus the analysis on the implications of monetary stabilization for a country's comparative advantage. We develop a two-country New Keynesian model with two tradable sectors in each country: one perfectly competitive, the other producing differentiated goods under monopolistic competition subject to sunk entry costs and nominal rigidities and hence more sensitive to macroeconomic uncertainty. Monetary policy can disproportionately foster competitiveness of differentiated goods firms, ultimately affecting the composition of domestic output and exports.