Umfang:
1 Online-Ressource (circa 19 Seiten)
,
Illustrationen
ISBN:
9781513511702
Serie:
IMF working paper WP/19, 197
Inhalt:
Monetary independence is at the core of the macroeconomic policy trilemma stating that an independent monetary policy, a fixed exchange rate and free movement of capital cannot exist at the same time. This study examines the relationship between monetary autonomy and inflation dynamics in a panel of Caribbean countries over the period 1980-2017. The empirical results show that monetary independence is a significant factor in determining inflation, even after controlling for macroeconomic developments. In other words, greater monetary policy independence, measured as a country's ability to conduct its own monetary policy for domestic purposes independent of external monetary influences, leads to lower consumer price inflation. This relationship-robust to alternative specifications and estimation methodologies-has clear policy implications, especially for countries that maintain pegged exchange rates relative to the U.S. dollar with a critical bearing on monetary autonomy
Weitere Ausg.:
Erscheint auch als Druck-Ausgabe Cevik, Serhan Trinity Strikes Back: Monetary Independence and Inflation in the Caribbean Washington, D.C. : International Monetary Fund, 2019 ISBN 9781513511702
Sprache:
Englisch
Schlagwort(e):
Graue Literatur
DOI:
10.5089/9781513511702.001
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