1. This leads to an increase in both internal and external demand for domestic traded goods, and an increase in internal demand for non-traded goods. In both sectors, producers that can adjust their price raise their price, while the others increase their demand for labor. The remaining transmission chains are analogous to those discussed in Section 5.2. References Alvarez, Fernandez, Andrew Atkeson;; Bilbiie;A closed economy is an open economy in which all consumption goods are non-tradables,2002
2. Limited Asset Market Participation: Does it Really Matter for Monetary Policy?
3. Inflation Forecasts and Monetary Policy;Ben S Bernanke;Journal of Money, Credit and Banking,1997
4. Limited Asset Markets Participation, Monetary Policy and (Inverted) Aggregate Demand Logic;Florin O Bilbiie;Journal of Economic Theory,2008