Monetary Policy Transmission in Emerging Markets and Developing 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 Transmission in Emerging Markets and Developing Economies write by Mr.Luis Brandao-Marques. This book was released on 2020-02-21. Monetary Policy Transmission in Emerging Markets and Developing Economies available in PDF, EPUB and Kindle. Central banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT). However, questions regarding the strength of monetary policy transmission from interest rates to inflation and output have often stalled progress. We conduct a novel empirical analysis using Jordà’s (2005) approach for 40 EMDEs to shed a light on monetary transmission in these countries. We find that interest rate hikes reduce output growth and inflation, once we explicitly account for the behavior of the exchange rate. Having a modern monetary policy framework—adopting IT and independent and transparent central banks—matters more for monetary transmission than financial development.
Inflation in Emerging and Developing Economies
Inflation in Emerging and Developing 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 in Emerging and Developing Economies write by Jongrim Ha. This book was released on 2019-02-24. Inflation in Emerging and Developing Economies available in PDF, EPUB and Kindle. This is the first comprehensive study in the context of EMDEs that covers, in one consistent framework, the evolution and global and domestic drivers of inflation, the role of expectations, exchange rate pass-through and policy implications. In addition, the report analyzes inflation and monetary policy related challenges in LICs. The report documents three major findings: In First, EMDE disinflation over the past four decades was to a significant degree a result of favorable external developments, pointing to the risk of rising EMDE inflation if global inflation were to increase. In particular, the decline in EMDE inflation has been supported by broad-based global disinflation amid rapid international trade and financial integration and the disruption caused by the global financial crisis. While domestic factors continue to be the main drivers of short-term movements in EMDE inflation, the role of global factors has risen by one-half between the 1970s and the 2000s. On average, global shocks, especially oil price swings and global demand shocks have accounted for more than one-quarter of domestic inflation variatio--and more in countries with stronger global linkages and greater reliance on commodity imports. In LICs, global food and energy price shocks accounted for another 12 percent of core inflation variatio--half more than in advanced economies and one-fifth more than in non-LIC EMDEs. Second, inflation expectations continue to be less well-anchored in EMDEs than in advanced economies, although a move to inflation targeting and better fiscal frameworks has helped strengthen monetary policy credibility. Lower monetary policy credibility and exchange rate flexibility have also been associated with higher pass-through of exchange rate shocks into domestic inflation in the event of global shocks, which have accounted for half of EMDE exchange rate variation. Third, in part because of poorly anchored inflation expectations, the transmission of global commodity price shocks to domestic LIC inflation (combined with unintended consequences of other government policies) can have material implications for poverty: the global food price spikes in 2010-11 tipped roughly 8 million people into poverty.
Dealing with the Challenges of Macro Financial Linkages in Emerging Markets
Dealing with the Challenges of Macro Financial Linkages in Emerging Markets - 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 Dealing with the Challenges of Macro Financial Linkages in Emerging Markets write by Otaviano Canuto. This book was released on 2013-10-29. Dealing with the Challenges of Macro Financial Linkages in Emerging Markets available in PDF, EPUB and Kindle. This book deals with the challenges of macro financial linkages in the emerging markets.
Financial Policies in Emerging Markets
Financial Policies in Emerging Markets - 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 Financial Policies in Emerging Markets write by Mario I. Bléjer. This book was released on 2002. Financial Policies in Emerging Markets available in PDF, EPUB and Kindle. An overview of the financial vulnerability of emerging market economies and how the impact of exchange rate regimes affects this vulnerability.
Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries
Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries - 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 Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries write by International Monetary Fund. This book was released on 2015-10-23. Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries available in PDF, EPUB and Kindle. Over the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial markets, and stabilized inflation at moderate levels. Monetary policy frameworks that have helped achieve these ends are being challenged by continued financial development and increased exposure to global capital markets. Many policymakers aspire to move beyond the basics of stability to implement monetary policy frameworks that better anchor inflation and promote macroeconomic stability and growth. Many of these LLMICs are thus considering and implementing improvements to their monetary policy frameworks. The recent successes of some LLMICs and the experiences of emerging and advanced economies, both early in their policy modernization process and following the global financial crisis, are valuable in identifying desirable features of such frameworks. This paper draws on those lessons to provide guidance on key elements of effective monetary policy frameworks for LLMICs.
