Inflation targeting and exchange rate management in less developed countries /

Inflation targeting and exchange rate management in less developed countries /

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Bibliographic Details
Author / Creator:	Airaudo, Marco, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, 2016. ©2016
Description:	1 online resource (65 pages) : illustrations.
Language:	English
Series:	IMF Working Paper, 1018-5941 ; WP/16/55 IMF working paper ; WP/16/55.
Subject:	Monetary policy -- Developing countries -- Econometric models. Foreign exchange rates -- Developing countries -- Econometric models. Inflation targeting -- Developing countries -- Econometric models. Foreign exchange rates -- Econometric models. Monetary policy -- Econometric models. Developing countries.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12504816

Hidden Bibliographic Details
Other authors / contributors:	Buffie, Edward F., author. Zanna, Luis-Felipe, (IMFstaff) International Monetary Fund. Research Department, issuing body. International Monetary Fund. Strategy, Policy, and Review Department, issuing body. International Monetary Fund. Institute for Capacity Development, issuing body.
ISBN:	1513567438 9781513567433 9781513567433
ISSN:	1018-5941
Notes:	"Research Department, Strategy, Policy, and Review Department, and Institute for Capacity Development." "March 2016." Includes bibliographical references (pages 57-64). Online resource; title from pdf title page (IMF.org Web site, viewed March 14, 2016).
Summary:	We analyze coordination of monetary and exchange rate policy in a two-sector model of a small open economy featuring imperfect substitution between domestic and foreign financial assets. Our central finding is that management of the exchange rate greatly enhances the efficacy of inflation targeting. In a flexible exchange rate system, inflation targeting incurs a high risk of indeterminacy where macroeconomic fluctuations can be driven by self-fulfilling expectations. Moreover, small inflation shocks may escalate into much larger increases in inflation ex post. Both problems disappear when the central bank leans heavily against the wind in a managed float.--Abstract.
Other form:	Print Version: Airaudo, Marco. Inflation Targeting and Exchange Rate Management In Less Developed Countries. Washington, D.C. : International Monetary Fund, 2016 9781513567433
Standard no.:	10.5089/9781513567433.001

Description
Summary:	We analyze coordination of monetary and exchange rate policy in a two-sector model of a small open economy featuring imperfect substitution between domestic and foreign financial assets. Our central finding is that management of the exchange rate greatly enhances the efficacy of inflation targeting. In a flexible exchange rate system, inflation targeting incurs a high risk of indeterminacy where macroeconomic fluctuations can be driven by self-fulfilling expectations. Moreover, small inflation shocks may escalate into much larger increases in inflation ex post. Both problems disappear when the central bank leans heavily against the wind in a managed float.
Item Description:	"Research Department, Strategy, Policy, and Review Department, and Institute for Capacity Development." "March 2016."
Physical Description:	1 online resource (65 pages) : illustrations.
Bibliography:	Includes bibliographical references (pages 57-64).
ISBN:	1513567438 9781513567433
ISSN:	1018-5941 1018-5941 ;