scholarly journals Optimal Monetary Policy and Capital Account Restrictions in a Small Open Economy

2015 ◽  
Vol 63 (2) ◽  
pp. 298-324 ◽  
Author(s):  
Zheng Liu ◽  
Mark M Spiegel
2007 ◽  
Vol 18 (1) ◽  
pp. 125-143 ◽  
Author(s):  
Jaesik Chung ◽  
Yongseung Jung ◽  
Doo Yong Yang

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Daisuke Ida ◽  
Mitsuhiro Okano

AbstractThis paper explores the delegation of several targeting regimes in a small open new Keynesian (NK) model and examines how central banks overcome stabilization bias in a small open NK model. Results indicate that both speed limit and real exchange rate targeting can carry the isomorphic properties of optimal monetary policy over to the closed economy. In addition, neither nominal income growth targeting nor CPI inflation targeting replicates a commitment policy. These findings provide new implications for optimal monetary policy in an open economy.


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