Abstract
The highly influential contribution of Obstfeld and Rogoff’s Redux model (1995) essentially initiated a new line of research that reflects the attempt to integrate nominal rigidities and imperfect competition into a dynamic general equilibrium framework within an intertemporal optimization approach. Since then, several theoretical models have been developed, extending the Obstfeld-Rogoff seminal model in order to address a number of macroeconomic issues; this new literature is commonly called ‘New Open Economy Macroeconomics’ (hereafter NOEM).1
Special thanks to Clifford Wymer for his invaluable help and advice. A preliminary version of the paper has been presented at the 58th European Meeting of the Econometric Society (ESEM) 20–4 August 2003.
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© 2007 Daniela Federici and Sergio Santoro
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Federici, D., Santoro, S. (2007). Monetary Shocks and Real Exchange Rate Dynamics. In: Arestis, P., Zezza, G. (eds) Advances in Monetary Policy and Macroeconomics. Palgrave Macmillan, London. https://doi.org/10.1057/9780230800762_12
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DOI: https://doi.org/10.1057/9780230800762_12
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