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Sunday, July 19, 2020 | History

2 edition of Endogenous currency of price setting in a dynamic open economy model found in the catalog.

Endogenous currency of price setting in a dynamic open economy model

Michael B. Devereux

Endogenous currency of price setting in a dynamic open economy model

by Michael B. Devereux

  • 257 Want to read
  • 39 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • Exports -- Prices.,
  • Currency question.,
  • Foreign exchange rates.

  • Edition Notes

    StatementMichael B. Devereux, Charles Engel.
    SeriesNBER working paper series -- no. 8559, Working paper series (National Bureau of Economic Research) -- working paper no. 8559.
    ContributionsEngel, Charles., National Bureau of Economic Research.
    The Physical Object
    Pagination34 p. ;
    Number of Pages34
    ID Numbers
    Open LibraryOL22429653M

      We construct an endogenous growth model that includes productive public capital and government debt. We assume that the government debt-to-GDP ratio is gradually adjusted to a target level, reflecting the permanent commitment rules in the Stability and Growth Pact or the Maastricht Treaty in the European Union (i.e., the well-known 60% rule).Cited by: Uribe () and Galí and Monacelli (). Kollmann () develops a small open economy model assuming monopolistic competition and staggered price setting to compute the effect of the monetary policy regime on welfare and business cycles. Using a small open economy model with sticky prices calibrated to the Mexican economy.

      Endogenous Variable: An endogenous variable is a classification of a variable generated by a statistical model that is explained by the relationships between functions within the model Author: Will Kenton. dynamic general equilibrium macro model in a tractable way. This is combined with an otherwise standard two-country model of an open economy with staggered price-setting, stochastic productivity and interest rate shocks, and monetary policy governed by an interest rate.

    An Open-Economy Ramsey Model Setup of the Model Behavior of a Small Economy’s Capital Stock and Output Behavior of a Small Economy’s Consumption and Assets The World Equilibrium The World Economy with a Constraint on International Credit Setup of a Model with Physical and Human. An Open-Economy DSGE Model for the Philippines Ruperto Majuca and Lawrence Dacuycuy1 all of whichreflect the state of the art in open economy Dynamic Stochastic General Equilibrium (DSGE) modelling. triggered by local currency price stickiness. We outline the basic structure of the combined ALLV-ALM-BVR model.


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Endogenous currency of price setting in a dynamic open economy model by Michael B. Devereux Download PDF EPUB FB2

Endogenous Currency of Price Setting in a Dynamic Open Economy Model Michael B. Devereux, Charles Engel. NBER Working Paper No. Issued in October NBER Program(s):International Finance and Macroeconomics Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices.

Endogenous Currency of Price Setting in a Dynamic Open Economy Model Michael B. Devereux and Charles Engel NBER Working Paper No. October JEL No. F3, F4 ABSTRACT Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices must be pre.

CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices must be pre-set. But to date, all of these studies take the currency of price setting as exogenous.

This paper sets up a simple two-country general equilibrium model in which exporting firms can choose the currency in which they set prices for sales to foreign markets. Endogenous Currency of Price Setting in a Dynamic Open Economy Model Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices must be pre-set.

But to date, all of these studies take the currency of price setting as exogenous. Endogenous currency of price setting in a dynamic open economy model. Cambridge, MA.: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Michael B Devereux; Charles Engel; National Bureau of Economic Research.

Get this from a library. Endogenous currency of price setting in a dynamic open economy model. [Michael B Devereux; Charles Engel; National Bureau of Economic Research.] -- Abstract: Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices must be pre-set.

Endogenous Currency of Price Setting in a Dynamic Open Economy Model Michael Devereux () and Charles Engel () NoNBER Working Papers from National Bureau of Economic Research Cited by: Endogenous Currency of Price Setting in a Dynamic Open Economy Model.

Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices must be pre-set. But to date, all of these studies take the currency of price setting as exogenous Author: Michael B. Devereux and Charles Engel.

Many papers in the recent literature in open economy macroeconomics make different assumptions about the currency in which firms set their export prices when nominal prices must be pre-set. But to date, all of these studies take the currency of price setting as : Michael B. Devereux and Charles Engel.

BibTeX @MISC{Devereux01givento, author = {Michael B. Devereux and Charles Engel and Michael B. Devereux and Charles Engel and Jel No. F and Michael B. Devereux and Charles Engel}, title = {given to the source. Endogenous Currency of Price Setting in a Dynamic Open Economy Model.

In Devereux et al. (a), the choice of currency for price setting is made endogenous. In an environment identical to the present model, it is shown that producers will wish to set their export prices in the currency of the country that has the most stable money growth by: Endogenous Currency of Price Setting in a Dynamic Open Economy Model NBER Working Papers, National Bureau of Economic Research, Inc View citations () Financial Constraints and Exchange Rate Flexibility in Emerging Market Economies Working Papers, Hong Kong Institute for Monetary Research View citations (1).

This paper explores the relationship between exchange rate policy and price flexibility, in a model where price flexibility itself is an endogenous choice of profit-maximizing firms.

A fixed Author: Michael Devereux. currency of pricing is exogenous. We present a model of endogenous currency choice in a dynamic price setting environment and show that the predictions of the model are strongly supported by the data.

⁄We wish to thank the international price program of the Bureau of Labor Statistics for access to unpublished micro data. Devereux, Michael and Charles Engel () “Endogenous Currency of Price Setting in a Dynamic Open Economy Model.” NBER Working Paper, No.

Dominguez, Kathryn M. () “The Dollar Exposure of Japanese Companies.”Cited by: 4. This paper develops a model of endogenous exchange rate pass-through within an open economy macroeconomic framework, where both pass-through and the exchange rate are simultaneously determined, and interact with one another.

Pass-through is endogenous because firms choose the currency in which they set their export prices. The foreign currency price of the single good in the model is fixed at P*.

The economy is small and takes P* as given. P* is set equal to 1. The domestic currency price of this good is P=EP*, where E is the exchange rate (the price of foreign currency in terms of domestic currency).Cited by: 6.

the nature of policy games in open economies. Recently, many have studied optimal monetary policy in open economies using the microfounded, open-economy sticky-price models based on the so-called New Open Economy Macroeconomics (hereafter, NOEM) initiated by Obstfeld and Rogoff () and Svensson and van Wijnbergen ().

Over the past decade there has been a revival of interest in endogenous models of economic fluctuations, in which fluctuations could persist even in the absence of exogenous shocks to the economy. 1 Following this line of research, the present paper investigates the stability of real exchange rate dynamics in the context of an endogenous cycle model Cited by: 3.

[] “ Endogenous Currency of Price Setting in a Dynamic Open Economy Model ” Working Paper No.National Bureau of Economic Research, Cambridge, MA, October. Crossref, Google Scholar Dornbusch, R. [ ] “ Exchange Rates and Prices ” American Economic Review 77 (1)–Devereux MB and C Engel (), ‘Endogenous Currency of Price Setting in a Dynamic Open Economy Model’, NBER Working Paper No Dwyer J and K Leong (), ‘ Changes in the Determinants of Inflation in Australia ’.built small-open economy models by assuming that foreign variables follow exogenous processes.

This the Role for Endogenous Persistence 2. MODEL The world is inhabited by a continuum of infinite-lived households, indexed by j ∈ [0,1]. Each F,t are the Home-currency price indexes of the domestically produced goods and.