Macroeconomic Interdependence in a Two-Country DSGE Model under Diverging Interest-Rate Rules

u_f=0;

v_d=0;

v_f=0;

e_ad=0;

e_af=0;

e_ud=0;

e_uf=0;

e_vd=0;

e_vf=0;

end;

steady;

check;

shocks;

var e_ad=.4;

var e_af=.4;

var e_ud=.4;

var e_uf=.4;

var e_vd=.4;

var e_vf=.4;

end;

stoch_simul(periods=2100);

B. References

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1988 (102 Stat. 1375); and Dec. 27, 2000 (114 Stat. 3028).

Brock, W. A. (1974): Money and Growth: The Case of Long Run Perfect Foresight. International Economic Review, Vol.

15, pp. 750-777.

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383-398.

The Science of Monetary Policy: A New Keynesian Perspective. Journal of
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Clarida, R., J. Gali, and M. Gertler (2001): Optimal Monetary Policy in Open versus Closed Economies: An Integrated

Approach. American Economic Review, Vol. 91, pp. 248-252.

Clarida, R., J. Gali, and M. Gertler (2002): Asimpleframeworkforinternationalmonetarypolicyanalysis. JournalofMon-
etary Economics, Vol. 49, pp. 879-904.

Corsetti, C. and P. Pesenti (2001): Welfare and Macroeconomic Interdependence. Quarterly Journal of Economics, Vol.

36

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