Front Matter
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund
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Front Matter Page

Research Department

Contents

  • 1. Introduction

  • 2. Model

    • 2.1. Households

    • 2.2. Producers

    • 2.3. Interest Rates

    • 2.4. Equilibrium and Some Analytics

  • 3. Impulse Response to a Monetary Policy Shock

  • 4. Empirical Evidence

    • 4.1. Data Sources

    • 4.2. Results

  • 5. Discerning Pricing Paradigm

  • 6. Optimal Monetary Policy

    • 6.1. Canonical Representation

    • 6.2. Welfare Loss Function

    • 6.3. Monetary Policy Trade-offs

  • 7. Conclusion

  • 8. References

  • Tables

  • 1. Parameter Values

  • 2. Currency Distribution

  • 3. ERPT into Colombian Export Prices (Dollarized Economies)

  • 4. ERPT into Colombia Export Prices (Non-Dollarized Economies)

  • 5. ERPT into Colombian Import Prices (Dollarized)

  • 6. ERPT into Colombian Import Prices (Non-Dollarized)

  • 7. ERPT into Colombian Export Quantities (Dollarized)

  • 8. ERPT into Colombian Import Quantities (Dollarized)

  • 9. ERPT into Colombian Export Quantities (Non-Dollarized)

  • 10. ERPT into Colombian Import Quantities (Non-Dollarized)

  • 11. Parameter Values

  • 12. Moment Matching

  • 13. ERPT (Non-Dollarized Economies)

  • 14. ERPT Quantities

  • Figures

  • 1. Impulse Response to a Domestic Monetary Policy Shock

  • 2. Impulse Response to a Domestic Monetary Policy Shock (continued)

  • 3. Exchange Rate and Terms-of-Trade

  • 4. ERPT – Export and Import Prices

  • 5. ERPT – Export and Import Prices, U

  • 6. ERPT – Export and Import Prices, R

  • 7. ERPT, Varying α and Γ

  • Appendix

  • Proof of Proposition

Dominant Currency Paradigm: A New Model for Small Open Economies
Author: Camila Casas, Mr. Federico J Diez, Ms. Gita Gopinath, and Pierre-Olivier Gourinchas