Dynamic General Equilibrium Analysis: The Open Economy Dimension
37 Pages Posted: 18 Oct 2002
Date Written: September 2002
This Paper discusses some key issues in the application of dynamic general equilibrium analysis to open economy modeling. In the context of the new open economy macroeconomics paradigm, we focus on: (i) the currency denomination of sticky prices; (ii) the role of the current account and net foreign assets; and (iii) the impact of fiscal policy.
Keywords: Dynamic general equilibrium, new open economy macroeconomics
JEL Classification: F3, F4
Suggested Citation: Suggested Citation