Monetary Policy, Model Uncertainty and Exchange Rate Volatility PDF Download
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Author: Agnieszka Markiewicz
Publisher:
ISBN:
Category :
Languages : en
Pages : 41
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Book Description
Author: Agnieszka Markiewicz
Publisher:
ISBN:
Category :
Languages : en
Pages : 41
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Book Description
Author: Gustavo Adler
Publisher: International Monetary Fund
ISBN: 1475547234
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
We study the use of foreign exchange (FX) intervention as an additional policy instrument in an environment with learning, where agents infer the central bank policy rules from its policy actions. Under full information, a central bank focused on stabilizing output and inflation can achieve better outcomes by using FX intervention as an additional policy tool. Under policy uncertainty, where agents perceive that monetary policy may also have exchange rate stabilization goals, the use of FX intervention entails a trade-off, reducing output volatility while increasing inflation volatility. While having an additional policy tool is always beneficial, we find that the optimal magnitude of intervention is higher in monetary policy regimes with lower uncertainty. These results indicate that the benefits of using FX intervention as an additional stabilization tool are greater in regimes where monetary policy is credibly focused on output and inflation stabilization.
Author: Mirco Magginetti
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Book Description
In this research the effect of monetary policy uncertainty on macroeconomic variables is inquired. Assuming that the volatility of a short term policy rate is able to reflect uncertainty toward a central bank's actions, a structural vector autoregressive model with stochastic volatilities and second moments effects on the mean is used to test the underlying hypothesis. The analysis is carried out for a thirty years long data span of quarterly Swiss data and impulse response functions for monetary policy volatility shocks are obtained: while it clearly appears that a volatility shock is associated with a slowdown of the economic activity with a dampening of growth and increasing unemployment, the effect on prices is less clear; being Switzerland a small open economy prices remain more heavily affected by foreign shocks as exchange rates fluctuations; finally there is some evidence of a negative impact of volatility on the policy rate itself, although of a contained magnitude.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1498330282
Category : Business & Economics
Languages : en
Pages : 132
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Book Description
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Author: William C. Gruben
Publisher: Springer Science & Business Media
ISBN: 1461561752
Category : Business & Economics
Languages : en
Pages : 247
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Book Description
The dramatic growth of international capital flow has provided unprecedented opportunities and risks in emerging markets. This book is the result of a conference exploring this phenomenon, sponsored by the Federal Reserve Bank of Dallas. The issues explored include direct versus portfolio investment; exchange rates and economic growth; and optimal exchange rate policy for stabilizing inflation in developing countries. It concludes with a panel discussion on central bank coordination in the midst of exchange rate instability.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 9781557750655
Category : Business & Economics
Languages : en
Pages : 76
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Book Description
In View of the continuation of substantial movements in exchange rate relationships among major currencies, the recent increase in protectionist pressures, and the disappointing performance of world trade, renewed concern has been expressed about the possible adverse effects of exchange rate variability on trade. Against the background of this concern, the following decision was reached at the ministerial meeting of the General Agreement of Tariffs and Trade (GATT) in November 1982.
Author: Jordi Galí
Publisher:
ISBN:
Category : Anti-inflationary policies
Languages : en
Pages : 64
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Book Description
We lay out a small open economy version of the Calvo sticky price model, and show how the equilibrium dynamics can be reduced to a tractable canonical system in domestic inflation and the output gap. We employ this framework to analyze the macroeconomic implications of three alternative monetary policy regimes for the small open economy: domestic inflation targeting, CPI targeting and an exchange rate peg. We show that a key difference among these regimes lies in the relative amount of exchange rate volatility that they entail. We also discuss a special case for which domestic inflation targeting constitutes the optimal policy, and where a simple second order approximation to the utility of the representative consumer can be derived and used to evaluate the welfare losses associated with suboptimal regimes.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451943148
Category : Business & Economics
Languages : en
Pages : 38
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Book Description
The paper considers gains from international economic policy coordination when there is uncertainty concerning the functioning of the world economy, but also learning about the “true” model on the part of policymakers. The paper reports estimates of plausible alternative versions of a standard, two-country model. Activist policy (either coordinated or uncoordinated) may produce large welfare losses in the absence of learning, if policymakers believe in the wrong model; hence exogenous money targets and freely flexible exchange rates may be best. However, model learning (from observations on macroeconomic variables) causes coordinated policies to dominate activist uncoordinated policies or exogenous money targets.
Author: William S. Haraf
Publisher: American Enterprise Institute
ISBN: 9780844736976
Category : Business & Economics
Languages : en
Pages : 226
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Book Description
Join Peppa and her friends on their class trip to the top of the mountain. What fun things will they find? This title is perfect for back to school.
Author: Naoyuki Yoshino
Publisher: Oxford University Press, USA
ISBN: 0198838107
Category : Business & Economics
Languages : en
Pages : 345
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Book Description
Barely two decades after the Asian financial crisis Asia was suddenly confronted with multiple challenges originating outside the region: the 2008 global financial crisis, the European debt crisis, and finally developed economies' implementation of unconventional monetary policies. The implementation of quantitative easing, ultra-low interest rate policies, and negative interest rate policies by a number of large central banks has given rise to concerns over financial stability and international capital flows. Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets explains how shocks stemming from the global financial crisis have affected macroeconomic and financial stability in emerging Asia. Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets brings together the most up-to-date knowledge impacts of recent macroeconomic shocks on Asia's real economy; the spillover effects of macroeconomic shocks on financial markets and flows in Asia; and key challenges for monetary, exchange rate, trade and macro prudential policies of developing Asian economies. It is authored by experts in the field of international macroeconomics from leading academic institutions, central banks, and international organizations including the International Monetary Fund, the Bank for International Settlement, and the Asian Development Bank Institute.
