Paoli, Bianca De; Küçük-Tuger, Hande; Søndergaard, Jens - Centre for Economic Performance, LSE - 2010
inflation targeting regimes are associated with a short position in foreign currency, while the opposite is true for … monetary shocks through the valuation channel. When central banks follow inflation targeting Taylor-type rules, valuation …Using an endogenous portfolio choice model, this paper examines how different monetary policy regimes can lead to …