The book investigates issues of policy design in open economies.
The performance of simple alternative policy rules is analysed in
the context of theoretical models using both analytical solutions
and numerical simulations techniques. One of the substantive
contributions of the research is that policy evaluation should take
into account, among other things, the implications of different
rules for foreign wealth and the exchange rate. Hence the open
economy models presented in the book include wealth effects and the
current account.
General
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