We develop and estimate a parsimonious New-Keynesian small open-economy model that incorporates Diagnostic Expectations (DE)—a behavioral alternative to Rational Expectations (RE). Under DE, agents ...
China is using open-source AI to spread economic gains beyond tech giants, a finance CEO said. This approach contrasts with closed US AI models, prioritizing affordability and scale, he said. Experts ...
Abstract: This paper develops a small open economy model in which entrepreneurs partially finance investment using foreign currency–denominated debt subject to an external finance premium. We use ...