An Announced Regime Switch : Optimal Policy for the Transition Period

The novelty of this article is its theoretical framework, which allows for modeling of an announced change in the type of monetary regime operated. The behavior of a small open economy that has announced the adoption of a monetary policy regime of offsetting nominal exchange rate changes is analyzed. The optimal monetary regime for the transition period and its effects on macroeconomic stability are studied. Moreover, the evolution of business cycle synchronization over the transition is analyzed

MoreLess

Year of publication:	2013
Authors:	Brázdik, František
Publisher:	[2013]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Geldpolitik \| Monetary policy \| Tschechien \| Czech Republic \| Kleine offene Volkswirtschaft \| Small open economy \| Wechselkurssystem \| Exchange rate regime \| Neoklassische Synthese \| Neoclassical synthesis