Reviving the Salter-Swan small open economy model
为萨尔特-斯旺政策框架提供了微观基础，该框架用于确定政策制定者在面对内部和外部经济目标时的汇率和财政立场。模型考虑了贸易条件、利率和贴现因子冲击，以及名义工资刚性和金融摩擦，为政策干预提供了依据。
This paper provides microfoundations to the Salter-Swan policy framework, a graphical apparatus designed to ascertain the exchange-rate and fiscal stance of a policymaker with internal and external economic targets. The environment is an infinite-horizon small open economy producing tradable and nontradable goods that takes world prices and world interest rates as given and is populated by optimizing households and firms. The economy is subject to terms of trade, interest rate, and discount factor shocks. The internal target of the government is the unemployment rate and the external target is the current account. Downward nominal wage rigidity and financial frictions serve as the rationale for meaningful policy intervention.