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Implications of Globalization for Monetary Policy

Wagner, Helmut - International Monetary Fund (IMF) - 2001

This paper argues that the implications of globalization for monetary policy come mainly through two channels: On the one hand, the many structural changes that are associated with the globalization process cause an increase in the uncertainty surrounding monetary policy. This includes an...

Persistent link: https://www.econbiz.de/10005769098

Overshooting and Dollarization in the Democratic Republic of the Congo

Beaugrand, Philippe - International Monetary Fund (IMF) - 2003

of inflation. Differences between the rate of inflation and currency depreciation (over- or undershooting of the exchange …

Persistent link: https://www.econbiz.de/10005264134

International Policy Coordination and Simple Monetary Policy Rules

Berger, Wolfram; Wagner, Helmut - International Monetary Fund (IMF) - 2006

importance of cost-push and productivity shocks. In many cases, a strict targeting of price indices like producer or consumer …

Persistent link: https://www.econbiz.de/10005264091

China; Strengthening Monetary Policy Implementation

Laurens, Bernard; Maino, Rodolfo - International Monetary Fund (IMF) - 2007

The People's Bank of China (PBC) has made great strides in modernizing its monetary policy frameworks but their effectiveness will diminish as the sophistication of the economy increases. Empirical evidence supports maintaining a reference to money in China's monetary strategy and enhancing the...

Persistent link: https://www.econbiz.de/10005769272

Data-Rich DSGE and Dynamic Factor Models

Kryshko, Maxym - International Monetary Fund (IMF) - 2011

Dynamic factor models and dynamic stochastic general equilibrium (DSGE) models are widely used for empirical research in macroeconomics. The empirical factor literature argues that the co-movement of large panels of macroeconomic and financial data can be captured by relatively few common...

Persistent link: https://www.econbiz.de/10009327874

The Information Content of Money in Forecasting Euro Area Inflation

Stavrev, Emil; Berger, Helge - International Monetary Fund (IMF) - 2008

money in forecasting euro-area inflation. We compare the predictive performance within and among various classes of … contains relevant information for inflation in some model classes. Money-based New Keynesian DSGE models and VARs incorporating …

Persistent link: https://www.econbiz.de/10005826669

Simple Monetary Rules Under Fiscal Dominance

Kumhof, Michael; Nunes, Ricardo; Yakadina, Irina - International Monetary Fund (IMF) - 2007

Is aggressive monetary policy response to inflation feasible in countries that suffer from fiscal dominance? We find … principle can produce unique equilibria. However, resulting inflation is extremely volatile and zero lower bound on nominal … interest rates is frequently violated. Within the set of feasible rules the optimal response to inflation is highly negative …

Persistent link: https://www.econbiz.de/10005768929

Monetary Policy Implementation at Different Stages of Market Development

Laurens, Bernard - International Monetary Fund (IMF) - 2005

The most salient trend in monetary policy over the past two decades has been increasing reliance on money market operations, which reflects the belief that allowing market forces to allocate financial resources brings about increased economic efficiency and growth. However, small economies and...

Persistent link: https://www.econbiz.de/10005252522

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

Jung, Yongseung; Choi, Woon Gyu - International Monetary Fund (IMF) - 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/10005605338

The Use and Abuse of Taylor Rules; How Precisely Can We Estimate them?

Tchaidze, Robert; Carare, Alina - International Monetary Fund (IMF) - 2005

This paper draws attention to inconsistencies in estimating simple monetary policy rules and their implications for policy advice. We simulate a macroeconomic model with a backward reaction function similar to Taylor (1993). We estimate different versions of a policy rule, using these simulated...

Persistent link: https://www.econbiz.de/10005769149