Asset Price Bubbles and Monetary Policy in a Small Open Economy

Borradores de Economia
Número: 
837
Publicado: 
Clasificación JEL: 
E32, R40, E47, E52
Palabras clave: 
Exogenous Bubble, Monetary policy, Macroeconomic volatility, DSGE model

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In this paper we expanded the closed economy model by Bernanke and Gertler (1999) in order to account for the macroeconomic effects of an asset price bubble in the context of a small open economy model. During the nineties emerging market economies opened