Economics, Econometrics and Finance
2 years ago

Trade openness reshapes economies, altering consumer prices and expenditure composition.

International Finance Discussion Paper
The Transmission of Domestic Shocks in the Open Economy
Christopher J. Erceg, Christopher Gust, J. David López‐Salido

Paper Summary

Related papers

Economics, Econometrics and Finance
2 years ago

Trade openness reshapes economies, altering consumer prices and expenditure composition.

Infrastructure Impact
Trade Impact
Economic Growth
1 view
Economics, Econometrics and Finance
4 years ago

Global lockdown for 39 days could save lives and economy.

COVID-19 Impacts
COVID-19 Modeling
COVID-19 Impact
2 views
Economics, Econometrics and Finance
4 years ago

Small Economies Thrive on Foreign Price Shocks, Boosting Consumption and Output

Infrastructure Impact
Monetary Models
3 views

The article explores how trade openness affects how domestic shocks spread in the economy. The researchers used a model to study this and found that openness mainly affects how people spend money and the difference between consumer and domestic prices, rather than the overall output and prices in the country.