Home-Product Bias, Capital Mobility, and the Effects of Monetary Policy Shocks in Open Economies

Arbeitspapier

This paper uses a dynamic general equilibrium two-country optimizing model to analyze the consequences of international capital mobility for the effects of monetary policy in open economies. The model shows that the difference between the short-run output effects of monetary policy shocks in a world of high capital mobility and those in a world of low capital mobility decreases if households have a home-product bias in preferences. This result implies that, in contrast to conventional wisdom derived from the textbook Mundell-Fleming model, the empirically observed integration of international financial markets need not result in a significant change in the propagation of monetary policy shocks if households have a strong bias for consuming home products.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Kiel Working Paper ; No. 1141

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Open Economy Macroeconomics ; Financial Aspects of Economic Integration ; Current Account Adjustment; Short-term Capital Movements
• Thema: Monetary Policy ; Capital mobility ; Home-product bias ; Geldpolitik ; Schock ; Makroökonomischer Einfluß ; Internationale Kapitalmobilität ; Konsumentenverhalten ; Offene Volkswirtschaft ; Neue Makrooekonomik offener Volkswirtschaften ; Theorie ; home bias

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Pierdzioch, Christian
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for World Economics (IfW)
• (wo): Kiel
• (wann): 2003

Weitere Informationen

• Handle: http://hdl.handle.net/10419/17818
• Letzte Aktualisierung: 10.03.2025, 11:45 MEZ