Monetary policy when export revenues drop
We study how monetary policy should respond to shocks which permanently alter the steady state structure of the economy. In such a case monetary policy affects not only the short run misallocations due to nominal rigidities, but also relative prices which stimulate reallocation of capital. We consider a permanent and negative shock to export revenues that requires a larger traded sector and a smaller non-traded sector in the new steady state. This reallocation calls for a change in relative prices during the transition, but may also lead to a period of high unemployment. We show how an appropr... Mehr ...
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Dokumenttyp: | doc-type:workingPaper |
Erscheinungsdatum: | 2022 |
Verlag/Hrsg.: |
Oslo: Norges Bank
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Schlagwörter: | ddc:330 / E52 / F41 / O14 / Structural Change / Dutch Disease / Monetary Policy |
Sprache: | Englisch |
Permalink: | https://search.fid-benelux.de/Record/base-28639596 |
Datenquelle: | BASE; Originalkatalog |
Powered By: | BASE |
Link(s) : | https://hdl.handle.net/10419/298438 |