International macroeconomic interdependence and imports of oil in a small open economy
Autor(a) principal: | |
---|---|
Data de Publicação: | 2011 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/15657 |
Resumo: | To the extent that oil imports may be relevant to the international dimension of policy, we study the transmission of shocks to open economies dependent on oil within a NOEM framework through a DSGE model of a small open economy with flexible prices, staggered price setting and local currency pricing. For this purpose we introduce imports of oil as a new intermediate good needed to produce the final good and, apart from the usual exogenous shocks when a small open economy is being modeled, we consider an uncovered interest-rate parity shock, a technology shock and an oil price shock. A second-order accurate solution method is used to solve numerically a calibrated model for Portugal and Spain and the simulation results are compared with historical data, showing similar volatilities and expected dynamic responses to exogenous shocks. The model is computed with an optimized Taylor-style interest rate rule that includes real exchange targeting, thus arguing in favour of an international dimension of monetary policy. |
id |
RCAP_8b8591b54650bf6b54888ef5668085b3 |
---|---|
oai_identifier_str |
oai:www.repository.utl.pt:10400.5/15657 |
network_acronym_str |
RCAP |
network_name_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository_id_str |
7160 |
spelling |
International macroeconomic interdependence and imports of oil in a small open economyInterest rate rulesInternational transmission mechanismNew Open Economy MacroeconomicsOil pricesTo the extent that oil imports may be relevant to the international dimension of policy, we study the transmission of shocks to open economies dependent on oil within a NOEM framework through a DSGE model of a small open economy with flexible prices, staggered price setting and local currency pricing. For this purpose we introduce imports of oil as a new intermediate good needed to produce the final good and, apart from the usual exogenous shocks when a small open economy is being modeled, we consider an uncovered interest-rate parity shock, a technology shock and an oil price shock. A second-order accurate solution method is used to solve numerically a calibrated model for Portugal and Spain and the simulation results are compared with historical data, showing similar volatilities and expected dynamic responses to exogenous shocks. The model is computed with an optimized Taylor-style interest rate rule that includes real exchange targeting, thus arguing in favour of an international dimension of monetary policy.Springer VerlagRepositório da Universidade de LisboaSousa, Teresa2018-06-20T09:58:49Z2011-042011-04-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/15657engSousa, Teresa (2011). "International macroeconomic interdependence and imports of oil in a small open economy". Portuguese Economic Journal, 10(1):35-601617-982X (print)10.1007/s10258-010-0068-2metadata only accessinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-12T01:30:56Zoai:www.repository.utl.pt:10400.5/15657Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:01:16.909723Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
International macroeconomic interdependence and imports of oil in a small open economy |
title |
International macroeconomic interdependence and imports of oil in a small open economy |
spellingShingle |
International macroeconomic interdependence and imports of oil in a small open economy Sousa, Teresa Interest rate rules International transmission mechanism New Open Economy Macroeconomics Oil prices |
title_short |
International macroeconomic interdependence and imports of oil in a small open economy |
title_full |
International macroeconomic interdependence and imports of oil in a small open economy |
title_fullStr |
International macroeconomic interdependence and imports of oil in a small open economy |
title_full_unstemmed |
International macroeconomic interdependence and imports of oil in a small open economy |
title_sort |
International macroeconomic interdependence and imports of oil in a small open economy |
author |
Sousa, Teresa |
author_facet |
Sousa, Teresa |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Sousa, Teresa |
dc.subject.por.fl_str_mv |
Interest rate rules International transmission mechanism New Open Economy Macroeconomics Oil prices |
topic |
Interest rate rules International transmission mechanism New Open Economy Macroeconomics Oil prices |
description |
To the extent that oil imports may be relevant to the international dimension of policy, we study the transmission of shocks to open economies dependent on oil within a NOEM framework through a DSGE model of a small open economy with flexible prices, staggered price setting and local currency pricing. For this purpose we introduce imports of oil as a new intermediate good needed to produce the final good and, apart from the usual exogenous shocks when a small open economy is being modeled, we consider an uncovered interest-rate parity shock, a technology shock and an oil price shock. A second-order accurate solution method is used to solve numerically a calibrated model for Portugal and Spain and the simulation results are compared with historical data, showing similar volatilities and expected dynamic responses to exogenous shocks. The model is computed with an optimized Taylor-style interest rate rule that includes real exchange targeting, thus arguing in favour of an international dimension of monetary policy. |
publishDate |
2011 |
dc.date.none.fl_str_mv |
2011-04 2011-04-01T00:00:00Z 2018-06-20T09:58:49Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/15657 |
url |
http://hdl.handle.net/10400.5/15657 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Sousa, Teresa (2011). "International macroeconomic interdependence and imports of oil in a small open economy". Portuguese Economic Journal, 10(1):35-60 1617-982X (print) 10.1007/s10258-010-0068-2 |
dc.rights.driver.fl_str_mv |
metadata only access info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
metadata only access |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Springer Verlag |
publisher.none.fl_str_mv |
Springer Verlag |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
repository.mail.fl_str_mv |
|
_version_ |
1799131101290037248 |