1. New Keynesian Open Economy Phillips Curve Razin and Yuen

6. Firm’s Optimization: Nominal Real

7. Flexible prices Set price one period in advance

8. ONE-PERIOD NOMINAL RIDIGITY

10. Steady state:

11. The Phillips Curve

12. ‘where Elasticity of wage demands, wrt to output, holding marginal utility of income constant Elasticity of marginal product of labor wrt output

13. Log-linearization of real mc: Partial-equilibrium relationship?

16. Perfect Capital Mobility

17. Closing the capital account: Closing the trade account: