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Trilemma challenges for the People's Republic of China

Kawai, Masahiro; Liu, Li-gang - 2015

liberalization, and monetary policymaking in the People's Republic of China (PRC). It then observes that the PRC's monetary policy …

Persistent link: https://www.econbiz.de/10010477581

Nonlinear monetary policy rules : an essay in the comparative study on Egyptian and Tunisian central banks

Baaziz, Yosra; Labidi, Moez - In: Economies : open access journal 4 (2016) 2, pp. 1-18

The purpose of this paper is to evaluate the behavior of monetary authorities in Tunisia and Egypt, in response to changes in macroeconomic variables over time based on LSTR model. In this sense, we estimate Taylor-type equations for short-term interest rate in Tunisia and Egypt using quarterly...

Persistent link: https://www.econbiz.de/10011499480

Implication of the Taylor Rule on Real Exchange Rate Movement in Kenya

Nandwa, Boaz - 2008

More often, persistent fluctuations in the real exchange rate tends to have significant adverse impact on prices, output and inflation expectations in an economy. Therefore, the ability to predict its movement over time with relative degree of accuracy is imperative for effective monetary policy...

Persistent link: https://www.econbiz.de/10014215458

Exchange Rate and Inflation Under Weak Monetary Policy : Turkey Verifies Theory

Gürkaynak, Refet S.; Kısacıkoğlu, Burçin; Lee, … - 2022

For the academic audience, this paper presents the outcome of a well-identified, large change in the monetary policy rule from the lens of a standard New Keynesian model and asks whether the model properly captures the effects. For policymakers, it presents a cautionary tale of the dismal...

Persistent link: https://www.econbiz.de/10014083478

Taylor Rule Deviations and Out-of-Sample Exchange Rate Predictability

Ince, Onur - 2019

The Taylor rule has become the dominant model for academic evaluation of out-of-sample exchange rate predictability. Two versions of the Taylor rule model are the Taylor rule fundamentals model, where the variables that enter the Taylor rule are used to forecast exchange rate changes, and the...

Persistent link: https://www.econbiz.de/10012904307

Inflation targeting in Colombia, 2002 - 2012

Urrutia, Miguel; Hofstetter Gascón, Marcel; Hamann S., … - 2014

After decades using monetary aggregates as the main instrument of monetary policy and having different varieties of crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as the nominal anchor, a floating exchange rate, and the...

Persistent link: https://www.econbiz.de/10011285649

Implications of exchange rate objectives under incomplete exchange rate pass-through

Adolfson, Malin - 2002

This paper analyzes the central bank s optimal objective function in a small open economy model allowing for incomplete exchange rate pass-through. The results indicate that there are welfare gains from different types of monetary policy inertia. The welfare improvements of exchange rate...

Persistent link: https://www.econbiz.de/10011583801

Explicit and Implicit Targets in Open Economies

Sgherri, Silvia - 2006

Under a flexible inflation targeting regime, should policymakers avoid any reaction to movements in the foreign exchange market? Using data for six advanced open economies explicitly targeting inflation, the paper examines empirically whether real exchange rate disequilibria systematically...

Persistent link: https://www.econbiz.de/10012780739

China's Evolving Monetary Policy Rule : From Inflation-Accommodating to Anti-Inflation Policy

Girardin, Eric - 2017

This paper aims to enhance the understanding of China's monetary policy rule since the mid-1990s, focusing on the role … of inflation. It investigates the rule followed by the People's Bank of China (PBoC) by considering both the structural … economic transformation of China and its evolving monetary policy framework.Our newly constructed monthly composite discrete …

Persistent link: https://www.econbiz.de/10012954971

Contemporary Monetary Policy in China : A Move Towards Price-Based Policy?

Nuutilainen, Riikka - 2015

This paper focuses on monetary policy in China. A set of different specifications for the monetary policy reaction … of China have come to place more weight on price-based instruments. A time-varying estimation procedure suggests that the …

Persistent link: https://www.econbiz.de/10013026120