scholarly journals Age and Gender Group Differences in Employment Responses to Monetary Policy Shock in a Small Open Economy: The Case of Korea

2017 ◽  
Vol 4 (2) ◽  
pp. 207-224
Author(s):  
Sungyup Chung
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Small Open Economy ◽  
Group Differences ◽  
Age And Gender ◽  
Gender Group ◽  
Monetary Policy Shock ◽  
And Gender

scholarly journals Asymmetric Effects of Monetary Policy on the Armenian Economy

2021 ◽  
Vol 80 (1) ◽  
pp. 46-103
Author(s):  
Haykaz Igityan ◽  
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Phillips Curve ◽  
Small Open Economy ◽  
Adjustment Costs ◽  
Policy Implications ◽  
Policy Shocks ◽  
The Asymmetry ◽  
Monetary Policy Shock ◽  
Monetary Policy Transmission Mechanism

Whether inflation and output respond symmetrically or asymmetrically to the same size of contractionary and expansionary monetary policy shock has important policy implications. This paper shows the presence of asymmetric responses in Armenian inflation and output to positive and negative monetary policy shocks of the same size by employing econometric models. Contractionary policy decreases inflation less than expansionary policy increases it. Output reacts in the opposite way. An estimated small open economy DSGE model with sticky wages and investment adjustment costs explains about half of the asymmetry observed in the monetary policy transmission mechanism. This paper finds that the main part of inflation reaction asymmetry is a result of a highly convex Phillips curve for the importers. The nonlinearities of the internal economy explain the predominant part of the asymmetry in output reaction.

scholarly journals Partially Anticipated Monetary Policy Shocks – Are They Stabilizing or Destabilizing?

2016 ◽  
Vol 236 (1) ◽  
Author(s):  
Sven Offick ◽  
Hans-Werner Wohltmann
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Imperfect Information ◽  
Small Open Economy ◽  
Monetary Policy Shocks ◽  
The Public ◽  
Dynamic Framework ◽  
Policy Shocks ◽  
Monetary Policy Shock ◽  
Shock Output

AbstractThis paper uses a dynamic framework of a small open economy to study the volatility effects of partially anticipated monetary policy shocks in which the public has imperfect information about the size and/or the timing of the future expansionary policy intervention. Our two main results are as follows: (i) Partially anticipated monetary policy shocks may be stabilizing, i. e. lead to a lower volatility than a fully anticipated monetary policy shock of the same form. (ii) However, we typically obtain a trade off in volatilities such that a simultaneous stabilization of inflation and output is not possible. If the public underestimates (overestimates) the size of the shock, output (inflation) may be stabilized. Our results imply that the central bank may have an incentive to withhold information from the public about the true central bank’s intention.

scholarly journals How Important Are Foreign Shocks in a Small Open Economy? The Case of Slovakia

2009 ◽  
Vol 9 (1) ◽  
pp. 1850155 ◽  
Author(s):  
Roman Horvath ◽  
Marek Rusnak
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Open Economy ◽  
Small Open Economy ◽  
Monetary Shocks ◽  
Positive Role ◽  
Interest Rate Policy ◽  
Monetary Policy Shock ◽  
Foreign Shocks

In this article, we provide evidence on the nature and the relative importance of domestic and foreign shocks – with a focus on monetary shocks – in the Slovak economy based on the block-restriction vector autoregression model during the years 1999–2007. We document a well-functioning monetary transmission mechanism in Slovakia. Subject to various sensitivity checks, we find that contractionary monetary policy shock has a temporary negative effect on the degree of economic activity and price level. We find that using output gap instead of GDP alleviates the price puzzle. In general, prices are driven mainly by foreign factors and the European Central Bank monetary policy shock on Slovak prices is more powerful than that of the National Bank of Slovakia. The Slovak Central Bank interest rate policy seems to follow the ECB's interest rates. On the other hand, spectacular Slovak economic growth is primarily driven by domestic factors suggesting the positive role of recently undertaken Slovak economic reforms.

scholarly journals Optimal Monetary Policy and Exchange Rate in a Small Open Economy with Unemployment

2014 ◽  
Vol 18 (3) ◽  
pp. 301-335 ◽  
Author(s):  
Hyuk-Jae Rhee ◽  
Jeongseok Song
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Open Economy ◽  
Small Open Economy ◽  
Optimal Monetary Policy

scholarly journals Monetary Policy in a Small Open Economy With a Preference for Robustness

2006 ◽  
Author(s):  
Richard Dennis ◽  
Kai Leitemo ◽  
Ulf Söderström
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Small Open Economy

ASSET PRICES, OUTPUT AND MONETARY POLICY IN A SMALL OPEN ECONOMY

2008 ◽  
Vol 59 (4) ◽  
pp. 666-686 ◽  
Author(s):  
Christopher Malikane ◽  
Willi Semmler
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Asset Prices ◽  
Small Open Economy

Monetary Policy Under Imperfect Capital Markets in a Small Open Economy

2003 ◽  
Vol 93 (2) ◽  
pp. 266-270 ◽  
Author(s):  
Anita Tuladhar
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Capital Markets ◽  
Small Open Economy ◽  
Imperfect Capital Markets

More on monetary policy in a small open economy A credit view

1999 ◽  
Vol 8 (2) ◽  
pp. 223-235 ◽  
Author(s):  
Ying Wu
Keyword(s):  
Monetary Policy ◽  
Open Economy ◽  
Small Open Economy ◽  
Credit View
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