Optimal monetary policy and the timing of asset trade in open economies

Senay O., Sutherland A.

ECONOMICS LETTERS, vol.95, no.2, pp.297-302, 2007 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 95 Issue: 2
  • Publication Date: 2007
  • Doi Number: 10.1016/j.econlet.2006.10.024
  • Journal Name: ECONOMICS LETTERS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.297-302
  • Keywords: timing of asset trade, monetary policy
  • Middle East Technical University Affiliated: No

Abstract

This paper analyses the timing of asset trade and its implications for monetary policy and welfare in open economies. Optimal policy is shown to differ significantly depending on whether asset trade takes place before or after policy decisions are made. (c) 2006 Elsevier B.V. All rights reserved.