BNET Business Dictionary
Business Definition for: Open Economy
- an economy that places no restrictions on the movement of capital, labor, foreign trade, and payments into and out of the country
Additional Resources
- The Futures of European Capitalism & Welfare and Work in the Open Economy. Volume 1: From Vulnerability to Competitiveness and Welfare and Work in the Open Economy. Volume 2: Diverse Responses to Common Challenges. .(Book Review)
- The Futures of European Capitalism. By VIVIEN SCHMIDT. Oxford: Oxford University Press, 2002. Pp.xiv + 357. [pounds sterling]12.99 paper ISBN 0-199-24092-2. Welfare and Work in the Open Economy. Volume 1: From Vulnerability to Competitiveness. Edited by FRITZ W. SCHARPF and VIVIEN SCHMIDT. Oxford:...
- Research articles 2003-04-01
- Monetary Policy and Exchange Rate Volatility in a Small Open Economy
- This report lays out a small open economy version of the Calvo sticky price model, and shows how the equilibrium dynamics can be reduced to a tractable canonical system in domestic inflation and the output gap. It employs this framework to analyze the macroeconomic implications of three alternative monetary policy...
- White papers 2002-04-01
- Inflation Targeting and Exchange Rate Rules in an Open Economy
- This paper provides a simple dynamic neo-Keynesian model that can be used to analyze the impact of monetary policy that considers inflation targeting in a small open economy. This economy is characterized by imperfect competition and short-run price rigidity. The main findings of the paper are that, depending on what...
- White papers 2004-02-01
- Optimal Monetary Policy In A Small Open Economy With Habit Formation And Nominal Rigidities
- Introducing habit formation into an open economy macroeconomic model with price stickiness, it examines the characteristics of an optimal monetary policy. It finds that, first; the optimal policy rule entails interest rate smoothing and responds to the lagged values. Second, habit formation enriches the dynamics of the economy with a...
- White papers 2003-01-01
- Closed And Open Economy Models Of Business Cycles With Marked Up And Sticky Prices
- Shifts in the extent of competition, which affect markup ratios, are possible sources of aggregate business fluctuations. Markups are countercyclical, and booms are times at which the economy operates more efficiently. It begins with a real model in which markup ratios correspond to the prices of differentiated intermediate inputs relative...
- White papers 2004-10-13
- Closing Small Open Economy Models
- The small open economy model with incomplete asset markets features a steady state that depends on initial conditions and equilibrium dynamics that possess a random walk component. A number of modifications to the standard model have been proposed to induce stationarity. This paper presents a quantitative comparison of these alternative...
- White papers 2002-10-01
- The Zero Bound in an Open Economy: A Foolproof Way of Escaping From a Liquidity Trap
- The paper examines the transmission mechanism of monetary policy in an open economy with and without a binding zero bound on nominal interest rates. In particular, a foolproof way of escaping from a liquidity trap is presented, consisting of a price-level target path, a devaluation of the currency and a...
- White papers 2000-10-01
- An Estimated Small Open Economy Model of the Financial Accelerator
- This paper develops a small open economy model where entrepreneurs partially finance investment using foreign currency denominated debt subject to a risk premium above and beyond international interest rates. It uses Bayesian estimation techniques to evaluate the importance of balance sheet vulnerabilities combined with the presence of the financial accelerator...
- White papers 2005-03-01
- Credit Frictions and Sudden Stops in Small Open Economies: An Equilibrium Business Cycle Framework for Emerging Markets Crises
- Financial frictions are a central element of most of the models that the literature on emerging markets crises has proposed for explaining the Sudden Stop phenomenon. To date, few studies have aimed to examine the quantitative implications of these models and to integrate them with an equilibrium business cycle framework...
- White papers 2002-09-01
- Credit Frictions and Sudden Stops in Small Open Economies: An Equilibrium Business Cycle Framework for Emerging Markets Crises
- Financial frictions are a central element of most of the models that the literature on emerging markets crises has proposed for explaining the 'Sudden Stop' phenomenon. To date, few studies have aimed to examine the quantitative implications of these models and to integrate them with an equilibrium business cycle framework...
- White papers 2002-04-01
- Exchange Rates, Inflation and Monetary Policy Objectives in Open Economies: The Experience of Chile
- This paper characterizes, empirically, the conduct of monetary policy in a small open economy. It finds evidence that the monetary authorities also react to real exchange rate misalignments. This reaction is comparatively larger than that found in developed economies. Finally, the evidence, although not conclusive, seems to suggest a non...
- White papers 2004-04-16
- "The economy is well into a healthy recovery".(Economy: how supply managers see business)
- * "The economy is well into a healthy recovery," says a November policy statement from the Shadow Open Market Committee SOMC, a self-appointed watchdog group for the Federal Reserve's Federal Open Market Committee FOMC. The SOMC is co * "The economy is well into...
- Research articles 2003-12-11
- Tough Economy Could Mean Fertile Ground for Open Innovation, says Haas' Chesbrough
- Henry Chesbrough is an adjunct professor at the Haas School of Business at the Universty of California-Berkeley. He serves as the executive director of the Center for Open Innovation. You can check out the first part of my conversation with him in my post of Wednesday 26 November....
- Blog posts 2008-12-10
- With mounting evidence that the economy is pulling decisively out of its recession. (Economy: How Supply Managers See High-Tech Business).(Shadow Open Market Committee proposes interest rate increase)(Brief Article)
- * With mounting evidence that the economy is pulling decisively out of its recession, a growing group of economists is clamoring for an immediate interest-rate hike from the Fed. Latest pronouncement from the self-styled Shadow Open Market Committe * With mounting evidence that the...
- Research articles 2002-05-16
- Cisco Systems to Open Networking-Equipment Plant in Salem, N.H.(Knight Ridder/Tribune Business News)
- May 11--In the latest sign that the Internet-driven new economy is breathing life back into New England's old manufacturing economy, Cisco Systems Inc. yesterday said it will open its largest factory in a building that once cranked out computers for May 11--In the latest sign...
- Research articles 2000-05-11
- The global economy will expand at a slightly tapered pace in 2005, as regions with open trade grow.(Economy: how supply managers see business)(Brief Article)
- * The global economy will expand at a slightly tapered pace in 2005, as regions with open trade grow faster than areas where local barriers remain, the World Bank forecasts. In a study entitled "Global Economic Prospects 2005," the Washington-based lender expects the world economy to...
- Research articles 2004-12-09
- Guy Vs. Guy: The Real Price of Open-Source Software
- Welcome to Guy Vs. Guy! In this recurring feature, Rick and Dave square off on the business and technology issues of the day. This week’s topic: open-source software. Can a business run effectively on the cheap/free stuff, or do issues like training, compatibility, and support negate the initial savings? ...
- Blog posts 2009-03-19
- What's Next: 4 Big Predictions for the U.S. Economy
- The global landscape has changed for good. Here are our biggest predictions for after the shakeout — plus suggestions for what you should do about them. ...
- Articles 2009-06-22
- A Theory of the Currency Denomination of International Trade
- Nominal rigidities due to menu costs have become a standard element in closed economy macroeconomic modeling. The 'New Open Economy Macroeconomics' literature has investigated the implications of nominal rigidities in an open economy context and found that the currency in which prices are set has significant implications for exchange rate...
- White papers 2002-07-01
- Apple gambles with retail plan; Computer marketer's stores face challenge of soft economy, demand.(Apple Computer)(Brief Article)(Statistical Data Included)
- Apple Computer's plan to open 25 stores this year amid slowing demand for personal computers and a sluggish economy has analysts and industry insiders scratching their heads. They're wondering whether Apple's foray will pay off, or whether it will en Apple Computer's plan to open 25...
- Research articles 2001-06-04
