External Shocks and Inflation in Developing Countries Under a Real Exchange Rate Rule PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download External Shocks and Inflation in Developing Countries Under a Real Exchange Rate Rule PDF full book. Access full book title External Shocks and Inflation in Developing Countries Under a Real Exchange Rate Rule by Mr.Peter Montiel. Download full books in PDF and EPUB format.
Author: Mr.Peter Montiel
Publisher: International Monetary Fund
ISBN: 1451849648
Category : Business & Economics
Languages : en
Pages : 50
Get Book Here
Book Description
This paper shows that the response of inflation to external shocks is very different when the authorities target the real exchange rate than when they follow a fixed exchange rate or a preannounced crawling peg. Specifically, shocks that would have no effect on the steady-state inflation rate under a fixed exchange rate are either inflationary or deflationary under a real exchange rate rule. Moreover, irrespective of the degree of capital mobility, the authorities will find it difficult to mitigate the destabilizing effects of real shocks on the price level by using monetary policy, except possibly in the very short run.
Author: Mr.Peter Montiel
Publisher: International Monetary Fund
ISBN: 1451849648
Category : Business & Economics
Languages : en
Pages : 50
Get Book Here
Book Description
This paper shows that the response of inflation to external shocks is very different when the authorities target the real exchange rate than when they follow a fixed exchange rate or a preannounced crawling peg. Specifically, shocks that would have no effect on the steady-state inflation rate under a fixed exchange rate are either inflationary or deflationary under a real exchange rate rule. Moreover, irrespective of the degree of capital mobility, the authorities will find it difficult to mitigate the destabilizing effects of real shocks on the price level by using monetary policy, except possibly in the very short run.
Author: Peter J. Montiel
Publisher:
ISBN:
Category :
Languages : en
Pages : 48
Get Book Here
Book Description
This paper shows that the response of inflation to external shocks is very different when the authorities target the real exchange rate than when they follow a fixed exchange rate or a preannounced crawling peg. Specifically, shocks that would have no effect on the steady-state inflation rate under a fixed exchange rate are either inflationary or deflationary under a real exchange rate rule. Moreover, irrespective of the degree of capital mobility, the authorities will find it difficult to mitigate the destabilizing effects of real shocks on the price level by using monetary policy, except possibly in the very short run.
Author: Peter Montiel
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 54
Get Book Here
Book Description
Author: Fondo Monetario Internacional
Publisher:
ISBN:
Category :
Languages : es
Pages : 33
Get Book Here
Book Description
Author: Mr.Mohsin S. Khan
Publisher: International Monetary Fund
ISBN: 9781557752093
Category : Business & Economics
Languages : en
Pages : 38
Get Book Here
Book Description
This paper addresses analytical aspects of exchange rate policy and emphasizes the relationship among exchange rate flexibility, financial discipline, and international competitiveness.
Author: Peter J. Montiel
Publisher:
ISBN:
Category : Developing countries
Languages : en
Pages : 54
Get Book Here
Book Description
Author: Mr.Marco Airaudo
Publisher: International Monetary Fund
ISBN: 1475523165
Category : Business & Economics
Languages : en
Pages : 65
Get Book Here
Book Description
We analyze coordination of monetary and exchange rate policy in a two-sector model of a small open economy featuring imperfect substitution between domestic and foreign financial assets. Our central finding is that management of the exchange rate greatly enhances the efficacy of inflation targeting. In a flexible exchange rate system, inflation targeting incurs a high risk of indeterminacy where macroeconomic fluctuations can be driven by self-fulfilling expectations. Moreover, small inflation shocks may escalate into much larger increases in inflation ex post. Both problems disappear when the central bank leans heavily against the wind in a managed float.
Author: Peter Montiel
Publisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 24
Get Book Here
Book Description
Author: Sebastian Edwards
Publisher: University of Chicago Press
ISBN: 0226184730
Category : Business & Economics
Languages : en
Pages : 460
Get Book Here
Book Description
In spite of the attention paid exchange rates in recent economic debates on developing countries, relatively few studies have systematically analyzed in detail the various ramifications of exchange rate policy in these countries. In this new volume from the National Bureau of Economic Research, leading economists use rigorous models to tackle various exchange rate issues, while also illuminating policy implications that emerge from their analyses. The volume, divided into four main sections, addresses: the role of exchange rates in stabilization programs and the adjustment process; the importance of exchange rate policy during liberalization reform in developing countries; exchange rate problems relevant and unique to developing countries, illustrated by case studies; and the problems defining, measuring, and identifying determinants of real exchange rates. Authors of individual papers examine the relation between commercial policies and exchange rates, the role of exchange rate policy in stabilization programs, the effectiveness of devaluations as a policy tool, and the interaction between exchange rate terms of trade an capital flow. This research will not only prove crucial to our understanding of the role of exchange rates in developing countries, but will clearly set the standard for future work in the field.
Author: Pierre-Richard Agénor
Publisher: International Monetary Fund
ISBN: 1451850921
Category : Business & Economics
Languages : en
Pages : 43
Get Book Here
Book Description
The paper examines the role of credibility in the conduct of exchange rate policy in developing countries, The analysis is based on a model in which policymakers are concerned about inflation and external competitiveness. Price setters in the nontraded goods sector of the economy adjust prices in reaction to anticipated fluctuations in the domestic price of tradable goods. This type of model is showm to generate a “devaluation bias” which undermines the credibility of a fixed exchange rate. The effect of reputational factors, signaling considerations, and joining a currency union as possible solutions to this bias is examined.