01606cas a2200241 a 4500 AALejournalIMF000744 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451922448 1018-5941 BD-DhAAL BD-DhAAL Chan-Lau, Jorge. Monetary Policy in a Small Open Economy with Credit Goods Production / Jorge Chan-Lau. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper analyzes the effects of monetary policy in a dynamic model of a small open economy with cash and credit goods production, where government consumption is financed by seignorage. It shows that the interrelationships between the growth rate of the monetary aggregate and the technological properties of the economy have an important bearing on the existence and uniqueness of equilibrium, the optimal inflation rate, and the occurrence of explosive hyperinflations. In consequence, the paper concludes that monetary policy does matter in the long run. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/153 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/153/001.1998.issue-153-en.xml IMF e-Library