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
- Ballmer: Google, Google, the economy, Google
- Microsoft CEO Steve Ballmer delivers the CES keynote speech Wednesday.(Credit: Corinne Schulze/CNET Networks)LAS VEGAS--Microsoft CEO Steve Ballmer arrived at the Consumer Electronics Show with his usual optimism, but he also brings a clear sense of reality: The tech industry is in for some rough times."The fact of the matter is,...
- News items 2009-08-07
- Ballmer takes on Google, the economy and Windows 7
- By Ina Fried CNET News.comPosted on ZDNet News: Jan 09, 2009 5:53:46 AM "The fact of the matter is, this is not a downturn, this is a bit of a reset. Those are quite different and we're trying to really suss through what we think that means for us," Ballmer...
- News items 2009-08-07
- 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
- Aussie Economy on Recovery Path: Stevens
- The Australian economy is now on a recovery path after emerging from one of mildest downturns on record, which has highlighted the nation's sensible macroeconomic policies and demand for the nation's resources from Asia, the central bank said.However, policymakers now need to lay the platform for a long and...
- News items 2009-11-05
- 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
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