A higher share of imported inputs into the production of non-commodity exports, reflecting the development of GVCs 3. A higher share of imported inputs into the production of domestic consumer goods, reflecting the development of GVCs 4. A lower elasticity of substitution between domestic inputs and imported inputs into the production of non-commodity exports, reflecting increased specialization 5.
A higher share of credit-constrained consumers, to proxy for an increased dispersion of income  14  We subject the two versions of the model to the same series of exogenous shocks and compare the model responses. Throughout, monetary policy is guided by the maintenance of the inflation target.