Hidden Bibliographic Details
| Other authors / contributors: | Baldini, Alfredo, author.
International Monetary Fund, issuing body.
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| ISBN: | 9781475502848
1475502842
9781475507041
1475507046
9781475574609
1475574606
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| Notes: | Title from PDF title page (IMF Web site, viewed April 9, 2012).
"April 2012."
Includes bibliographical references (pages 31-33).
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| Summary: | We develop a DSGE model with a banking sector to analyze the impact of the financial crisis on Zambia and the role of the monetary policy response. We view the crisis as a combination of three related shocks: a worsening in the terms of the trade, an increase in the country's risk premium, and a decrease in the risk appetite of local banks. We characterize monetary policy as "stop and go": initially tight, subsequently loose. Simulations of the model broadly match the path of the economy during this period. We find that the initial policy response contributed to the domestic impact of the crisis by further tightening financial conditions. We study the factors driving the "stop" part of policy and derive policy implications for central banks in low-income countries.
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| Other form: | Print version: Monetary policy in low-income countries in the face of the global crisis : the case of Zambia. [Washington, District of Columbia] : International Monetary Fund, ©2012 46 pages IMF working paper ; WP/12/94 9781475502848
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