Detail Exchange rate regimes, monetary policy and fluctuations Bibliografi Author: Gertler, Mark (Advisor); Monacelli, Tommaso Topik: ECONOMICS; GENERAL Bahasa: (EN )    ISBN: 0-599-47286-3     Penerbit: NEW YORK UNIVERSITY     Tahun Terbit: 1999     Jenis: Theses - Dissertation Fulltext: 9945306.pdf (0.0B; 2 download) Abstract This thesis studies the interaction between exchange rate regime and endogenous monetary policy in shaping the business cycle in an open economy context. It is articulated in three sections. In the first section, the effect of the nominal exchange rate regime per se on the volatility of real exchange rate and output is analyzed. This is motivated by the evidence that in industrial countries the real exchange rate is very sensitive to variations in the exchange rate regime, while output is not. I show that a model that combines nominal rigidities with a systematic behavior of monetary policy can rationalize both facts. Nominal rigidities are crucial for the impact of the exchange rate regime on the volatility of the real exchange rate, while endogenous monetary policy is crucial for the (reduced) impact of the regime on output volatility. The second section studies the appropriate choice of an inflation target for a small open economy, in a model with imperfect pass-through. I show that the dynamic adjustment of the economy is quite different under imperfect (IPT) with respect to perfect pass-through (PPT). Under PPT, a domestic inflation interest rate rule differs substantially from a CPI rule, whereas under IPT the two rules perform quite similarly, due to the insensitivity of CPI inflation to the exchange rate movements. A rule that includes the exchange rate is more successful in reducing the volatility of all measures of inflation. Finally, I use a structural VAR approach and estimate the effects of domestic and foreign monetary policy shocks. I then evaluate the performance of a basic optimizing sticky prices model in replicating the results. Two key modelling features receive confirmation from the data: (i) The assumption that the uncovered interest parity holds, in order to match the response of the exchange rates to monetary policy shocks; (ii) The specification of a systematic component in the conduct of the domestic monetary policy, in order to replicate the sign in the international transmission of foreign policy shocks. However, the model performs poorly in mimicking the persistence in the dynamics of the trade balance. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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