Series: IMF Working Papers
Author(s): Roberto Chang , and Luis Catão
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 July 2010
Keywords: Small Open Economy, DSGE models, inflation, terms of trade, relative price, Open Economy Macroeconomics,
The large swings in world food prices in recent years renew interest in the question of how monetary policy in small open economies should react to such imported price shocks. We examine this issue in a canonical o...