Options for monetary policy arising from interactions between it and Indian foreign exchange (FX) markets. A brief … institutions in markets that are now deep and liquid, and policy trilemmas in dealing with large cross border flows in a rapidly … survey covers recent rapid changes providing a snapshot of current microstructure, and of monetary policy institutions. The …

monetary policy before the 1980s, and their changes thereafter. We develop an otherwise standard sticky-price dynamic … policy rule ensures equilibrium determinacy and maximizes welfare. Consequently, we argue that the policy of the Federal … Reserve System in the pre-Volcker era, often associated with a passive monetary policy rule, was closer to optimal than …

markets are quantified for both a large and a small euro area economy. When markups in these markets are reduced, there are … transitional costs as they induce a temporary decline in consumption, but raising competition in goods markets can mitigate some of … these costs. Thus, coordinating the timing of reforms across markets is beneficial, and the more so the more open the …

This paper studies optimal monetary policy in a two-sector small open economy model under segmented asset markets and … sticky prices. We solve the Ramsey problem under full commitment, and characterize the optimal monetary policy in a … flexible prices. Second, under the optimal policy the volatility of non-tradable inflation is close to zero. Third, stabilizing …

authorities to influence the pace of inflation. First, as markets are integrated, the common, cross-border sources of inflation … states may not have policy leverage to meet the Maastricht inflation limit necessary for entering the eurozone. Casestudies …