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...
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| Altri autori: | , |
| Natura: | Periodico |
| Lingua: | English |
| Pubblicazione: |
Washington, D.C. :
International Monetary Fund,
2022.
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| Serie: | IMF Working Papers; Working Paper ;
No. 2022/112 |
| Soggetti: | |
| Accesso online: | Full text available on IMF |