International monetary policy analysis with durable goods /
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| Other Authors: | |
| Format: | Thesis eBook |
| Language: | English |
| Published: |
[College Station, Tex.] :
[Texas A&M University],
[2010]
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| Subjects: | |
| Online Access: | Link to OAK Trust copy |
| Abstract: | The dissertation studies a model of an economy which produces and exports durable goods. It analyzes the optimal monetary policy for such a country. Generally, monetary policy has a bigger economic effect on durable goods relative to non-durable goods because durable goods can be stored and households get utility from the stock of durable goods. This dissertation shows that, in Nash equilibrium, the central bank of a durable goods producing country can control changes of the price level with smaller changes in the monetary policy instrument. In the cooperative equilibrium, the monetary authority of the country which imports non-durable goods and exports durable goods should raise the interest rate by more, relative to the Nash case, in response to a rise in foreign inflation. On the other hand, the monetary authority of the country which imports durable goods and exports non-durable goods should raise the interest rate by less than the other country. |
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| Item Description: | "Major Subject: Economics" Title from author supplied metadata (automated record created 2010-11-11 10:17:47). Electronic resource. |
| Physical Description: | 1 online resource. |
| Bibliography: | Includes bibliographical references. |