Abstract
The single most significant application of the OGM regarding issues of monetary policy in the open economy is Kareken and Wallace (1981). The major applications of CIA models are Lucas (1982) and Helpman (1981). The central result of Kareken and Wallace is the indeterminacy of exchange rates. In contrast, Lucas and Helpman apparently have determinate exchange rates as long as the environment does not feature intrinsinc uncertainty. One of the intentions of this chapter is to shed some light upon the difference between their approaches, and investigate which one is superior.
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© 1992 Springer-Verlag Berlin · Heidelberg
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Schönfelder, B. (1992). Monetary Policy in the Open Economy. In: Overlapping Structures as a Model of Money. Microeconomic Studies. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-45713-5_9
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DOI: https://doi.org/10.1007/978-3-642-45713-5_9
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-45715-9
Online ISBN: 978-3-642-45713-5
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