Format:
1 Online-Ressource (circa 57 Seiten)
,
Illustrationen
ISBN:
9781513549668
Series Statement:
IMF working paper WP/20, 122
Content:
Many central banks have relied on a range of policy tools, including foreign exchange intervention (FXI) and capital flow management tools (CFMs), to mitigate the effects of volatile capital flows on their economies. We develop an empirically-oriented New Keynesian model to evaluate and quantify how using multiple policy tools can potentially improve monetary policy tradeoffs. Our model embeds nonlinear balance sheet channels and includes a range of empirically-relevant frictions. We show that FXI and CFMs may improve policy tradeoffs under certain conditions, especially for economies with less well-anchored inflation expectations, substantial foreign currency mismatch, and that are more vulnerable to shocks likely to induce capital outflows and exchange rate pressures
Additional Edition:
Erscheint auch als Druck-Ausgabe Adrian, Tobias A Quantitative Model for the Integrated Policy Framework Washington, D.C. : International Monetary Fund, 2020 ISBN 9781513549668
Language:
English
Keywords:
Graue Literatur
DOI:
10.5089/9781513549668.001
Author information:
Zhou, Jianping