Production Relocation and the Effect of Monetary Policy
Production Relocation and the Effect of Monetary Policy
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제20권 제1호
-
2005.0393 - 108 (16 pages)
- 0
This paper analyzes the macroeconomic effect of production relocation by using an open economy macroeconomic model. Our analysis shows, paradoxically, that acceleration in production relocation might have an expansive effect on the home economy. We also show that monetary expansion has welfare-enhancing effects even in an economy where production relocation exists. However, advancing production relocation amplifies the effect of monetary policy on the exchange rate. On the other hand, it reduces the effect on the relative home income by advancing production relocation.
Ⅰ. Introduction
Ⅱ. The Model
Ⅲ. Does production relocation always affect the home economy deflation?
Ⅳ. The Effect of Monetary Policy
Ⅴ. Production Relocation and the Efficacy of Money Policy
Ⅵ. Conclusions
(0)
(0)