Open Economies and Outside Lags in Monetary Policy. Research suggests that the effects of monetary policy through interest rates, exchange rates, and net exports are more rapid than the effects of...

Open Economies and Outside Lags in Monetary Policy. Research suggests that the effects of monetary policy through interest rates, exchange rates, and net exports are more rapid than the effects of monetary policy on investment. As an economy becomes more open, how will this change affect the outside lag in monetary policy?