The Monetary Transmission Mechanism for a Small Open Economy in a Monetary Union

Banco de Portugal, Economics and Research Department, Working Papers 01/2009;
Source: RePEc

ABSTRACT This paper develops a model of a small open economy integrated in a monetary union. The model incorporates the standard nominal and real frictions in the literature. The parameters of the model are calibrated to the Portuguese data and the effects of the standard monetary policy shock are studied.

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