Parsley, David; Popper, Helen - Hong Kong Institute for Monetary Research (HKIMR), … - 2009
a small, forward-looking model and explore the importance of the exchange rate in the monetary policy rule. This … approach allows us to discern whether a monetary authority targets the exchange rate per se, or instead simply responds to the … exchange rate in order to achieve its other objectives. The approach also removes a downward bias on the estimate of the extent …