| Summary: | 碩士 === 國立東華大學 === 國際經濟研究所 === 96 === ABSTRACT
This study investigates the optimal monetary policy with alternative sticky
price in a two-country economy. The framework of two-country model is based on
the Obstfeld and Rogoff (1996). The purpose of this work is to detect real effect
of the optimal monetary policy in the economy after external shocks. Following
Chari, Christiano, and Kehoe (1991), Schmitt-Groh´e and Uribe (2004)’s study,
when the price is flexible, the optimal monetary policy in closed economy is
near Friedman rule. Our findings also support this conclusion in open economy.
Furthermore, we show the variability in our optimal monetary economy is modest
low rather than that under the conventional Taylor rule.
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