OPEN-ECONOMY MACROECONOMICS UNDER IMPERFECT COMPETITION - A 2-COUNTRYMODEL

Authors
FENDER J YIP CK
Citation
J. Fender et Ck. Yip, OPEN-ECONOMY MACROECONOMICS UNDER IMPERFECT COMPETITION - A 2-COUNTRYMODEL, Journal of international economics, 37(1-2), 1994, pp. 49-63
Citations number
15
Categorie Soggetti
Economics
Journal title
Journal of international economics → ACNP
ISSN journal
00221996
Volume
37
Issue
1-2
Year of publication
1994
Pages
49 - 63
Database
ISI
SICI code
0022-1996(1994)37:1-2<49:OMUIC->2.0.ZU;2-H
Abstract
This paper constructs a two country macroeconomic model where prices a re set by imperfectly competitive firms and wages by trade unions. Une mployment benefit is nominally rigid in at least one country. The effe cts of monetary expansion under both fixed and flexible exchange rates , and exchange rate changes under fixed rates, are considered. The res ults change significantly if it is assumed that in one country unemplo yment benefit is fully indexed.