Shocks monetarios bajo tipo de cambio flexible

Abstract

This paper studies the effects of monetary shocks on an open economy under flexible exchange rate, in the intertemporal maximization framework. Specifically, it analyses the effects of an increase of money supply, an open market operation and a change in the monetary growth rate. In all cases, the money is neutral in the long run. But in the short run, the open market operation has real effects because it changes the people's assets composition and induces to the people to save until they reach their optimal stock of foreign assets. This fact produces an overshooting in the exchange rate and a surplus in the balance of trade.