Asset Price Bubbles and Monetary Policy in a Small Open Economy

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

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