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International Macroeconomics Feenstra Solutions Manual Download.zip


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@TechReportSutherland, author=Sutherland, Alan, title=International Monetary Policy Coordination and Financial Market Integration, year=2004, month=Feb, institution=C.E.P.R. Discussion Papers, type=CEPR Discussion Papers, url= , number=4251, abstract=This Paper analyses the implications of financial market structure for the existence and size of welfare gains from international monetary policy coordination. Policy coordination is analysed in a two-country stochastic general equilibrium model simple enough to yield explicit analytical solutions. Welfare gains from coordination are found to be largest when: the elasticity of substitution between home and foreign goods differs from unity; international markets in state-contingent assets allow full consumption risk sharing; and asset trade takes place before monetary policy rules are determined. Welfare gains are found to be much smaller when there are no international financial markets., keywords=financial integration; monetary policy coordination; risk sharing


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