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Monetary Independence in Emerging Markets : Does the Exchange Rate Regime Make a Difference?

Philippon, Thomas - 2001

This paper compares the impact of shocks to U.S. interest rates and emerging market bond spreads on domestic interest rates and exchange rates across several emerging market economies with different exchange rate regimes. Consistent with conventional priors, the results indicate that interest...

Persistent link: https://www.econbiz.de/10014401887

Modeling with Macro-Financial Linkages : Credit and Policy Shocks in Emerging Markets

Benes, Jaromir - 2009

This paper develops a stylized, small, open economy macro model that incorporates an explicit and non-trivial role for financial intermediation. It illustrates how such a model could be used for policy analysis in an emerging market economy where policymakers are concerned about risks associated...

Persistent link: https://www.econbiz.de/10014402486

Transparency and Monetary Policy with Imperfect Common Knowledge

Roca, Mauro - 2010

Is it desirable that central banks be more transparent in the communication of sensible information when agents have diverse private information? In practice, there exists some consensus about the benefits of acting in this way. However, other studies warn that increasing the precision of public...

Persistent link: https://www.econbiz.de/10014402814

Commodity Price Shocks and Imperfectly Credible Macroeconomic Policies in Commodity-Exporting Small Open Economies

Medina Guzman, Juan Pablo - 2014

output, aggregate demand, and inflation to an increase in commodity price are magnified when these rules are imperfectly … volatility. Also, our results indicate that having an explicit fiscal rule and an inflation targeting regime contribute to …

Persistent link: https://www.econbiz.de/10014411151

Output Gap in Presence of Financial Frictions and Monetary Policy Trade-offs

Furlanetto, Francesco - 2014

The recent global financial crisis illustrates that financial frictions are a significant source of volatility in the economy. This paper investigates monetary policy stabilization in an environment where financial frictions are a relevant source of macroeconomic fluctuation. We derive a measure...

Persistent link: https://www.econbiz.de/10014411477

Leaning Against the Wind and the Timing of Monetary Policy

Agur, Itai - 2013

If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but...

Persistent link: https://www.econbiz.de/10014395272

Optimal Monetary Policy in a Small Open Economy with Habit Formation and Nominal Rigidities

Jung, Yongseung - 2003

Introducing habit formation into an open economy macroeconomic model with price stickiness, we examine the characteristics of an optimal monetary policy. We find that, first, the optimal policy rule entails interest rate smoothing and responds to the lagged values of the foreign interest rate...

Persistent link: https://www.econbiz.de/10014399689

Revisiting the monetary transmission nechanism through an industry-level differential approach

Choi, Sangyup; Willems, Tim; Yoo, Seung Yong - 2022

vary systematically with the included characteristics). Rather than relying on standard monetary policy shock …

Persistent link: https://www.econbiz.de/10013170546

Disagreement about future inflation : understanding the benefits of inflation targeting and transparency

Brito, Steve; Carrière-Swallow, Yan; Gruss, Bertrand - 2018

We estimate the determinants of disagreement about future inflation in a large and diverse sample of countries … literature on the benefits of inflation targeting regimes and central bank transparency. The reduction in disagreement that … follows the adoption of inflation targeting is entirely due to increased central bank transparency. Since the benefits of …

Persistent link: https://www.econbiz.de/10011809574

Considerations in Reducing Inflation From Low to Lower Levels

Tokarick, Stephen - 1998

In recent years, many countries have successfully reduced their inflation rates to relatively low levels of 2 to 3 … percent. The question then arises as to whether it would be desirable to move to even lower rates of inflation. The paper … examines the benefits and costs of moving from low inflation to even lower inflation by drawing together recent work on this …

Persistent link: https://www.econbiz.de/10014403460