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inflation rate or the output gap. The result is robust to alternative specification and estimation methods. This highlights the … importance of the exchange rate as a source of shock and supports the "fear of floating" hypothesis. Evidence also suggests that … in some countries the central bank's response to a negative inflation shock might be weaker than to a positive shock …
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The subject of this paper is the evaluation of monetary policy reaction function on panel data of 37 world economies, both advanced and emerging markets, during the period of 1995Q1 - 2018Q3. The paper aims to evaluate the role and importance of the exchange rate in monetary policy reaction...
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This paper investigates both the effects of domestic monetary policy and external shocks on fundamental macroeconomic variables in six fast growing emerging economies: Brazil, Russia, India, China, South Africa and Turkey - denoted hereafter as BRICS_T. The authors adopt a structural VAR model...
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