Financial stability in open economies
| dc.contributor.author | Fujiwara, Ippei | |
| dc.contributor.author | Teranishi, Yuki | |
| dc.date.accessioned | 2025-04-08T01:02:20Z | |
| dc.date.available | 2025-04-08T01:02:20Z | |
| dc.date.issued | 2013-04 | |
| dc.description.abstract | Do financial frictions call for policy cooperation? This paper investigates the implications of financial frictions for monetary policy in the open economy. Welfare analysis shows that there are long-run gains which result from cooperation, but, dynamically, financial frictions per se do not require policy cooperation to improve global welfare over business cycles. In addition, inward-looking financial stability, namely eliminating inefficient fluctuations of loan premiums in the home country, is the optimal monetary policy in the open economy, irrespective of the existence of policy coordination. | |
| dc.identifier.issn | 2204-9770 | |
| dc.identifier.uri | https://hdl.handle.net/1885/733747245 | |
| dc.language.iso | en_AU | |
| dc.provenance | The publisher permission to make it open access was granted in November 2024 | |
| dc.publisher | Crawford School of Public Policy, The Australian National University | |
| dc.relation.ispartofseries | AJRC working papers | |
| dc.rights | Author(s) retain copyright | |
| dc.source | Australia-Japan Research Centre Working Papers | |
| dc.source.uri | https://crawford.anu.edu.au | |
| dc.title | Financial stability in open economies | |
| dc.type | Working/Technical Paper | |
| dcterms.accessRights | Open Access | |
| dspace.entity.type | Publication | |
| local.bibliographicCitation.issue | Jun-13 | |
| local.type.status | Published Version |