The paper compares the impact of announcing exchange rate-based versus money-based stabilisation programmes in a time series cross-section of countries. The analysis finds that, on average, the effect of announcing exchange rate-based programmes is more credible, in terms of reducing inflation...

The paper estimates McCallum and Taylor monetary policy reaction functions, and hybrids mixing instruments and targets from the two frameworks, for 20 emerging market economies. McCallum-Taylor specifications with an interest rate instrument and a nominal income gap target perform better than...

The paper models monetary policy in China using a hybrid McCallum-Taylor empirical reaction function. The feedback rule allows for reactions to inflation and output gaps, and to developments in a trade-weighted exchange rate gap measure. The investigation finds that monetary policy in China has,...

This paper analyses a no-Ponzi-game condition (NPG) for the government's surplus in Peru, Philippines, South Africa, Thailand, and Venezuela using annual data and cointegration methods. With the marginal exception of South Africa, the NPG cannot be found to hold in the countries investigated. An...

This paper investigates the central bank's behaviour in a developing economy through a nominal monetary policy feedback rule (NFR) that embodies an inflation targeting mechanism. Particularly, the Dominican Republic is modelled by allowing the hypothetical NFR to receive feedback from inflation...

The paper studies daily interbank rate determination and volatility in the Dominican Republic during a major banking crisis. The investigation uses a novel, automatic, general-to-specific technology (PcGets) to reduce a baseline (mean) specification linking interbank rates and aggregate banking...

The paper models money demand in the Dominican Republic using a novel, automatic general-to-specific, econometric technology - PcGets. The study finds economically sensible long run relations for real M1 and M2. Likewise, meaningful short run money demand functions are estimated. Remarkably, the...

The paper examines the relative significance of monetary aggregates and interest rates in China using the information approach to monetary policy. The analysis reveals the superiority and robustness of a narrow monetary aggregate in contributing information about future movements in inflation.