DP3540 Dynamic General Equilibrium Analysis: The Open Economy Dimension

Author(s): Giovanni Ganelli, Philip R. Lane
Publication Date: September 2002
Keyword(s): dynamic general equilibrium, new open economy macroeconomics
JEL(s): F3, F4
Programme Areas: International Macroeconomics
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=3540

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.