Openness , imperfect exchange rate pass-through and monetary policy

@inproceedings{Smets2001OpennessI,
  title={Openness , imperfect exchange rate pass-through and monetary policy},
  author={Frank R. Smets and R. H. M. Wouters},
  year={2001}
}
This paper analyses the implications of imperfect exchange rate pass-through for optimal monetary policy in a linearised open-economy dynamic general equilibrium model calibrated to euro area data. Imperfect exchange rate pass through is modelled by assuming sticky import price behaviour. The degree of domestic and import price stickiness is estimated by reproducing the empirical identified impulse response of a monetary policy and exchange rate shock conditional on the response of output, net… CONTINUE READING
Highly Influential
This paper has highly influenced 13 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS
Highly Cited
This paper has 102 citations. REVIEW CITATIONS

Citations

Publications citing this paper.

102 Citations

051015'00'03'07'11'15
Citations per Year
Semantic Scholar estimates that this publication has 102 citations based on the available data.

See our FAQ for additional information.

References

Publications referenced by this paper.
Showing 1-10 of 50 references

Staggered prices in a utility maximizing framework

  • G. A. Calvo
  • Journal of Monetary Economics
  • 1983
Highly Influential
6 Excerpts

Optimal monetary policy and exchange rate volatility in a small open economy

  • J. Gali, T. Monacelli
  • 2000
Highly Influential
9 Excerpts

Business cycle and monetary policy analysis in a structural sticky-price model of the euro area

  • M. Casares
  • ECB Working Paper No
  • 2001
Highly Influential
3 Excerpts

Imperfect exchange rate pass-through: strategic pricing and menu costs

  • A. Ghosh, H. Wolf
  • CESifo Working Paper
  • 2001
Highly Influential
4 Excerpts

Optimal interest rate rules and exchange rate pass-through”, mimeo, University of Rome and Federal Reserve Bank of New York

  • G. Corsetti, P. Pesenti
  • 2000
Highly Influential
6 Excerpts

Similar Papers

Loading similar papers…