Bad Dreams Under Alternative Anchors : Are the Consequences Different? /

Using a simple model, this paper shows how a strict monetary rule exhibits characteristics similar to those of an exchange rate anchor, in terms of a lack of robustness in the presence of adverse expectations ('bad dreams'). More specifically, as an anticipated devaluation under an exchang...

Descripció completa

Dades bibliogràfiques
Autor principal: Auernheimer, Leonardo
Altres autors: George, Susan
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2000.
Col·lecció:IMF Working Papers; Working Paper ; No. 2000/020
Accés en línia:Full text available on IMF
LEADER 01765cas a2200253 a 4500
001 AALejournalIMF001133
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781451843835 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Auernheimer, Leonardo. 
245 1 0 |a Bad Dreams Under Alternative Anchors :   |b Are the Consequences Different? /  |c Leonardo Auernheimer, Susan George. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2000. 
300 |a 1 online resource (23 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a Using a simple model, this paper shows how a strict monetary rule exhibits characteristics similar to those of an exchange rate anchor, in terms of a lack of robustness in the presence of adverse expectations ('bad dreams'). More specifically, as an anticipated devaluation under an exchange rate rule leads to well-known contractionary effects, an anticipated increase in the money stock under a monetary rule, though initially expansionary, becomes contractionary when these expectations are not validated. This suggests that much of the criticism of an exchange rate anchor implicitly considers not another rule but rather, discretion as the alternative. 
538 |a Mode of access: Internet 
700 1 |a George, Susan. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2000/020 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2000/020/001.2000.issue-020-en.xml  |z IMF e-Library