Beggar-thyself or beggar-thy-neighbour? The welfare effects of monetary policy
Tervala, Juha ;  Engler, Philipp ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleBeggar-thyself or beggar-thy-neighbour? The welfare effects of monetary policy
AuthorTervala, Juha
AuthorEngler, Philipp
EditorUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages19 S.
Series ; 2010,06 : Economics
KeywordsOpen economy macroeconomics; monetary policy; beggar-thyself; beggar-thy-neighbour
Classification (DDC)330 Economics
AbstractThis paper examines whether monetary expansion is a beggar-
thyself or beggar-thy-neighbour policy. Obstfeld and Rogo¤ (1995)
show that monetary expansion under producer currency pricing in-
creases domestic and foreign overall welfare, in cases where the cross-
country substitutability is high. If the cross-country substitutability
is low, then monetary expansion is a beggar-thyself policy that re-
duces domestic welfare and increases foreign welfare (Corsetti & Pe-
senti 2001; Tille 2001). In this paper, we will show that regardless
of whether the cross-country substitutability is high or low, monetary
expansion is always a beggar-thyself policy in the short run.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Lehrstuhl für Geldtheorie und Geldpolitik
Year of publication2010
Type of documentBook
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Created at2010-03-24 : 06:21:07
Last changed2016-01-05 : 02:38:18
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000005035