Alternative Monetary Policy Rules in a Small Open Economy with Financial Frictions: The Case of Korea
This paper first shows an empirical result of VAR that Korean economy has experienced a severe economic contraction to an exogenous country spread shock. To analyze the effect of alternative monetary policy on the economy, the paper sets up a multi-sector small open economy new Keynesian (NK hereaft...
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| Format: | Article |
| Language: | English |
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Korea Institute for International Economic Policy
2011-09-01
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| Series: | East Asian Economic Review |
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| Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.2011.15.3.235 |