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The Macroeconomic Effects of Trade Tariffs: Revisiting the Lerner Symmetry Result. (2018). Lindé, Jesper ; Pescatori, Andrea ; Linde, Jesper.
In: Working Paper Series.
RePEc:hhs:rbnkwp:0363.

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  1. International Financial Integration in a Changing Policy Context – the End of an Era?. (2018). Kollmann, Robert ; Chinn, Menzie ; Devereux, Michael B.
    In: MPRA Paper.
    RePEc:pra:mprapa:90400.

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References

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  5. Appendix A. The Open Economy New Keynesian Model The large-scale model closely follows Erceg, Guerrieri and Gust (2006) and Erceg and Lindé (2013). The model consists of two equally sized countries (or regions) –home and foreign –and allows for endogenous investment, hand-to-mouth (HM) or “Keynesian”households, sticky wages as well as sticky prices, trade adjustment costs, and incomplete …nancial markets across the two countries. Given the isomorphic structure of the two countries, our exposition below largely focuses on the structure of the home economy.
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  57. where the discount factor satis…es 0 < < 1: As in Smets and Wouters (2003, 2007), we allow for the possibility of external habit formation in preferences, so that each household member cares about its consumption relative to lagged aggregate consumption per capita of forward-looking agents CO t 1. The period utility function depends on an each member’ s
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