The international transmission of monetary policy in a dollar pricing model

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dc.contributor Suomen Pankki Tervala, Juha 2014-09-22T07:58:24Z 2014-09-22T07:58:24Z 2007
dc.identifier.isbn 978-952-462-406-0
dc.identifier.isbn 978-952-462-407-7
dc.identifier.issn 1456-6184
dc.description.abstract This paper analyses the international transmission of monetary policy in a case where all export prices are set in US dollars. 'Dollar pricing' implies that the international effects of US monetary shocks are different to those of European shocks because of asymmetric exchange rate pass-through to import prices. A dollar pricing model can explain the observed asymmetry in the transmission of monetary policy: US monetary policy affects US output more than European monetary policy affects European output. I also show that the dollar pricing model reintroduces the current account as an important channel through which monetary policy affects welfare in the short run. The paper concludes that under dollar pricing monetary expansion is a beggar-thy-neighbour policy. Keywords: open economy macroeconomics, monetary policy, international policy transmission JEL classification numbers: F41, F42, F30
dc.format.extent 33 s.
dc.language.iso eng
dc.subject mallit
dc.subject valuutat
dc.subject USA
dc.subject Eurooppa
dc.subject hinnoittelu
dc.subject ulkomaankauppa
dc.subject valuuttakurssit
dc.subject rahapolitiikka
dc.subject tuonti
dc.subject häiriöt
dc.subject kansainvälinen
dc.subject vienti
dc.subject hinnat
dc.subject leviäminen
dc.subject SP
dc.subject RP
dc.subject USD
dc.title The international transmission of monetary policy in a dollar pricing model
dc.type Sarjajulkaisu
dc.identifier.urn URN:NBN:fi:bof-20140807395
dc.subject.jel F41
dc.subject.jel F42
dc.subject.jel F30 Bank of Finland Research Discussion Papers
dc.series.year 2007
dc.series.number 29/2007
dc.series.sortingnumber 0029 5.10.2007

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