òòò½Íø Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Risky Steady State
òòò½Íø Review
vol. 101,
no. 3, May 2011
(pp. 398–401)
Abstract
We propose a simple quantitative method to linearize around the risky steady state of a small open economy. Unlike when the deterministic steady state is used, the net foreign asset position is well defined. We allow for stochastic income and stochastic interest rate.Citation
Coeurdacier, Nicolas, Hélène Rey, and Pablo Winant. 2011. "The Risky Steady State." òòò½Íø Review 101 (3): 398–401. DOI: 10.1257/aer.101.3.398JEL Classification
- E10 General Aggregative Models: General
- F41 Open Economy Macroeconomics