01949cas a2200277 a 4500 AALejournalIMF004685 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865707 1018-5941 BD-DhAAL BD-DhAAL Elekdag, Selim. Can a Rule-Based Monetary Policy Framework Work in a Developing Country? : The Case of Yemen / Selim Elekdag, Nabil Ben Ltaifa, Todd Schneider, Saade Chami. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (28 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Monetary policy in Yemen is largely rudimentary and ad hoc in nature. The Central Bank of Yemen's (CBY) approach has been based on discretionary targeting of broad money without any clear target to anchor inflation expectations. This paper argues in favor of a new formal monetary policy framework for Yemen emphasizing a proactive and rule-based approach with a greater direct focus on price stability in the context of a flexible management of the exchange rate. Although, as in many developing countries, institutional capacity is a concern, adopting a more formal framework could impel the kind of changes that are required to strengthen the ability of the CBY in achieving low and stable rates of inflation over the medium term. Mode of access: Internet Ben Ltaifa, Nabil. Chami, Saade. Schneider, Todd. IMF Working Papers; Working Paper ; No. 2007/006 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/006/001.2007.issue-006-en.xml IMF e-Library