Global financial conditions and monetary policy autonomy /

Global financial conditions and monetary policy autonomy /

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Bibliographic Details
Author / Creator:	Cáceres, Carlos, author.
Imprint:	[Washington, D.C] : International Monetary Fund, [2016] ©2016
Description:	1 online resource (38 pages) : color illustrations
Language:	English
Series:	IMF working paper ; WP/16/108 IMF working paper ; WP/16/108.
Subject:	Monetary policy -- Econometric models. Business cycles -- Econometric models. Business cycles -- Econometric models. Monetary policy -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12505105

Hidden Bibliographic Details
Other authors / contributors:	Carrière-Swallow, Yan, author. Gruss, Bertrand, author. International Monetary Fund. Western Hemisphere Department, issuing body.
ISBN:	9781484382066 1484382064
Notes:	"June 2016." "Western Hemisphere Department." Includes bibliographical references (pages 34-37). Online resource; title from pdf title page (IMF.org website, viewed July 13, 2016).
Summary:	"Is the Mundell-Fleming trilemma alive and well? International co-movement of asset prices takes place alongside synchronized business cycles, complicating the identification of financial spillovers and assessments of monetary policy autonomy. A benchmark for interest rate comovement is to impose the null hypothesis that central banks respond only to the outlook for domestic inflation and output. The authors show that common approaches used to estimate interest rate spillovers tend to understate the degree of monetary autonomy enjoyed by small open economies with flexible exchange rates. They propose an empirical strategy that partials out those spillovers that are associated with impaired monetary autonomy. Using this approach, they revisit the predictions of the trilemma and find more compelling evidence that flexible exchange rates deliver monetary autonomy than prior work has suggested."--Abstract.
Other form:	Print Version: Caceres, Carlos. Global Financial Conditions and Monetary Policy Autonomy. Washington, D.C. : International Monetary Fund,2016 9781484382066
Standard no.:	10.5089/9781484382066.001

Description
Summary:	Is the Mundell-Fleming trilemma alive and well? International co-movement of asset prices takes place alongside synchronized business cycles, complicating the identification of financial spillovers and assessments of monetary policy autonomy. A benchmark for interest rate comovement is to impose the null hypothesis that central banks respond only to the outlook for domestic inflation and output. We show that common approaches used to estimate interest rate spillovers tend to understate the degree of monetary autonomy enjoyed by small open economies with flexible exchange rates. We propose an empirical strategy that partials out those spillovers that are associated with impaired monetary autonomy. Using this approach, we revisit the predictions of the trilemma and find more compelling evidence that flexible exchange rates deliver monetary autonomy than prior work has suggested.
Item Description:	"June 2016." "Western Hemisphere Department."
Physical Description:	1 online resource (38 pages) : color illustrations
Bibliography:	Includes bibliographical references (pages 34-37).
ISBN:	9781484382066 1484382064