NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Optimal Monetary Policy in a 'Sudden Stop'

Fabio Braggion, Lawrence J. Christiano, Jorge Roldos

NBER Working Paper No. 13254
Issued in July 2007

---- Acknowledgements -----

Braggion thanks the European Central Bank and the International Monetary Fund for their hospitality. Christiano is grateful for the financial support of a National Science Foundation. The authors are grateful for the advice and comments of Klaus Adam, Martin Eichenbaum, Alejandro Izequierdo, Ken Judd, Narayana Kocherlakota, Juan Carlos Rodriguez, Andrew Scott, Jaume Ventura and Michael Woodford. The results reported in this paper do not necessarily reflect the opinion of the International Monetary Fund or the National Bureau of Economic Research.

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