01744cas a2200253 a 4500 AALejournalIMF009426 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451868425 1018-5941 BD-DhAAL BD-DhAAL Devereux, Michael. Financial Globalization and Monetary Policy / Michael Devereux, Alan Sutherland. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (32 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 What does financial globalization imply for the design of monetary policy? Does the case for price stability change in an environment of large cross country gross asset holdings?. This paper is concerned with the effects of monetary policy under endogenous international portfolio choice and incomplete markets. With endogenous portfolios, monetary policy takes on new importance due to its impact on the distribution of returns on nominal assets. Surprisingly, we find an even stronger case for price stability in this environment. Even without nominal rigidities, price stability has a welfare benefit by enhancing the risk sharing capacity of nominal bond returns. Mode of access: Internet Sutherland, Alan. IMF Working Papers; Working Paper ; No. 2007/279 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/279/001.2007.issue-279-en.xml IMF e-Library