Monetary Policy and Net Exports Externalities in the Small Open Economy
扩展了新凯恩斯小型开放经济DSGE模型，发现净出口外部性使最优货币政策不同于封闭经济，最优政策应利用外部性提高国内生产实际价值并稳定国内通胀，同时比较了不同货币政策规则。
Abstract We extend a New Keynesian small open economy dynamic stochastic general equilibrium (DSGE) model with nontradable goods and intermediate inputs. We show that the optimal monetary policy in the small open economy is not necessarily isomorphic to the closed economy due to net exports externalities. The optimal policymaker is willing to take advantage of the externalities and to raise the real value of home production, along with stabilizing composite domestic inflation. Also, we rank alternative monetary policy rules, estimate the optimal monetary policy rule associated with welfare, and show that setting interest rates toward their target levels of composite domestic inflation and net exports is desirable.