Disinflation in Closed and Small Open Economies

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dc.contributor.authorFaryna, Oleksandr
dc.contributor.authorJonsson, Magnus
dc.contributor.authorShapovalenko, Nadiia
dc.date.accessioned2020-07-24T13:38:09Z
dc.date.available2020-07-24T13:38:09Z
dc.date.issued2019
dc.description.abstractThis paper examines the cost of disinflation as measured by the sacrifice ratio and the central bank loss function in closed and small open economies. We show that the sacrifice ratio is slightly higher in the small open economy if monetary policy in both economies follow identical Taylor rules. However, if monetary policiesfollow optimized simple rulesthe sacrifice ratio becomes slightly lower in the small open economy. The cost in terms of the central bank loss is higher in the small open economy irrespective of monetary policies. Imperfect central bank credibility changes the results quantitatively, but not qualitatively. Finally, in both economies, the optimal implementation horizon is approximately two quarters in advance and approximately four quarters if central bank credibility is imperfect.uk_UA
dc.identifier.citationFaryna O. Disinflation in Closed and Small Open Economies : [working papers] / O. Faryna, M. Jonsson, N. Shapovalenko ; National Bank of Ukraine - Kyiv : [National Bank of Ukraine], 2019. - 31 p.uk_UA
dc.identifier.urihttps://ekmair.ukma.edu.ua/handle/123456789/17724
dc.language.isoenuk_UA
dc.relation.sourceNational Bank of Ukraineen_US
dc.statusfirst publisheden_US
dc.subjectDisinflationen_US
dc.subjectsmall open economyen_US
dc.subjectnew Keynesian modelen_US
dc.subjectimperfect credibilityen_US
dc.subjectimplementationen_US
dc.subjectworking papersen_US
dc.titleDisinflation in Closed and Small Open Economiesen_US
dc.typeWorking Paperen_US
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Лабораторія фінансово-економічних досліджень