Inflation Targeting in Dollarized Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Inflation Targeting in Dollarized Economies write by Leonardo Leiderman. This book was released on 2006. Inflation Targeting in Dollarized Economies available in PDF, EPUB and Kindle. The shift to inflation targeting has contributed to the relatively low inflation observed in some emerging market economies although, as noted by many economists, the preconditions required for a successful implementation were not in place. The existence of managed exchange rate regimes, a narrow base of domestic nominal financial assets, the lack of market instruments to hedge exchange rate risks, together with fear of floating and dollarization, have been stressed as factors that might weaken the efficacy of monetary policy. By examining various aspects of monetary transmission and policy formulation in two highly dollarized economies (Peru and Bolivia) vis-à-vis two economies with low levels of dollarization (Chile and Colombia), we found that, while dollarization imposes differences in both the transmission capacity of monetary policy and its impact on real and financial sectors, it does not preclude the use of inflation targeting as a policy regime.
Monetary Policy Rules for Financially Vulnerable Economies
Monetary Policy Rules for Financially Vulnerable Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Monetary Policy Rules for Financially Vulnerable Economies write by Mr.Eduardo Morón. This book was released on 2003-02-01. Monetary Policy Rules for Financially Vulnerable Economies available in PDF, EPUB and Kindle. One distinguishable characteristic of emerging market economies is that they are not financially robust. These economies are incapable of smoothing out large external shocks, as sudden capital outflows imply large and abrupt swings in the real exchange rate. Using a small open-economy model, this paper examines alternative monetary policy rules for economies with different degrees of liability dollarization. The paper answers the question of how efficient it is to use inflation targeting under high liability dollarization. Our findings suggest that it might be optimal to follow a nonlinear policy rule that defends the real exchange rate in a financially vulnerable economy.
IMF Working Papers
IMF Working Papers - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook IMF Working Papers write by Eric Parrado. This book was released on 2006. IMF Working Papers available in PDF, EPUB and Kindle.
The Monetary Transmission in Dollarized and Non-Dollarized Economies
The Monetary Transmission in Dollarized and Non-Dollarized Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Monetary Transmission in Dollarized and Non-Dollarized Economies write by Mr.Santiago Acosta Ormaechea. This book was released on 2011-04-01. The Monetary Transmission in Dollarized and Non-Dollarized Economies available in PDF, EPUB and Kindle. The paper conducts a comparative study of the monetary policy transmission in two economies that run a well-established IT regime, Chile and New Zealand, vis-à-vis two economies operating under relatively newer IT regimes, and which are exposed to a significant degree of dollarization, Peru and Uruguay. It is shown that the traditional interest rate channel is effective in Chile and New Zealand. For Peru and Uruguay, the exchange rate channel is instead more relevant in the transmission of monetary policy. This latter result follows from the limited impact of the policy rate in curbing inflationary pressures in these two countries, in combination with the fact that they have a relatively large and persistent exchange rate pass through. Finally, it is shown that the on-going de-dollarization process of Peru and Uruguay has somewhat strengthened their monetary transmission through the interest rate channel.
Monetary Policy in Dollarized Economies
Monetary Policy in Dollarized Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Monetary Policy in Dollarized Economies write by Mr.Adam Bennett. This book was released on 1999-03-15. Monetary Policy in Dollarized Economies available in PDF, EPUB and Kindle. Dollarization - the holding by residents of a substantial portion of their assets in foreign-currency-denominated assets- is a common feature of developing and transition economies, and therefore typical of many countries with IMF - supported adjustment programs. This paper analyzes policy issues that arise-and various monetary strategies that may be pursued- when the monetary sector is dollarized, and it considers the implications that dollarization has for the design of IMF programs.
