Monetary Policy and Exchange Rate Dynamics in a Behavioral Open Economy Model /

We develop an extension of the open economy New Keynesian model in which agents are boundedly rational a la Gabaix (2020). Our setup nests rational expectations (RE) as a special case and it can successfully mitigate many "puzzling" aspects of the relationship between exchange rates and in...

Disgrifiad llawn

Manylion Llyfryddiaeth
Prif Awdur: Kolasa, Marcin
Awduron Eraill: Ravgotra, Sahil, Zabczyk, Pawel.
Fformat: Cylchgrawn
Iaith:English
Cyhoeddwyd: Washington, D.C. : International Monetary Fund, 2022.
Cyfres:IMF Working Papers; Working Paper ; No. 2022/112
Pynciau:
Mynediad Ar-lein:Full text available on IMF