Hidden Bibliographic Details
Other authors / contributors: | International Monetary Fund. Western Hemisphere Department, issuing body.
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ISBN: | 1451905963 9781451905960 1282107097 9781282107090 1462301401 9781462301409 1452776407 9781452776408 9786613800442 6613800449
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ISSN: | 2227-8885
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Notes: | Includes bibliographical references (page 19). Restrictions unspecified Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 English. digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
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Summary: | Since 1996, the Bank of Jamaica (BoJ) has sought to limit changes in the exchange rate for the Jamaican dollar in the context of its efforts to maintain low inflation. However, with a persistently high public sector deficit, real interest rates have remained generally high, which partly explains the slow pace of growth. This paper discusses an alternative monetary policy mix for achieving low variance for inflation and output through the prism of an empirical macroeconomic model. The simulation results suggest that a monetary policy mix that takes into account the impact of policy on both inflation and output achieves lower variance for inflation and output compared with the current policy mix, which tilts somewhat toward exchange rate stabilization. A case, therefore, can be made for the BoJ to move to a soft inflation targeting regime supported by fiscal consolidation.
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Other form: | Print version: Sun, Yan. Monetary policy rule for Jamaica. [Washington, D.C] : International Monetary Fund, ©2005
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Standard no.: | 10.5089/9781451905960.001
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