Monetary Policy and Portfolio Choice in an Open Economy Macro Model
- 1 May 2007
- journal article
- Published by Oxford University Press (OUP) in Journal of the European Economic Association
- Vol. 5 (2-3) , 491-499
- https://doi.org/10.1162/jeea.2007.5.2-3.491
Abstract
This paper explores the role of monetary policy in an open economy in an environment of endogenous portfolio choice. The model is simple enough to allow solutions for optimal portfolios to be derived analytically for a range of different asset market environments. We explore the impact of monetary policy on national bond and equity portfolios in environments where assets markets are either complete or incomplete. (JEL: E52, E58, F41)Keywords
This publication has 1 reference indexed in Scilit:
- The new open economy macroeconomics: a surveyJournal of International Economics, 2001