Foreign Exchange Intervention and the Dutch Disease /

We study the optimal foreign exchange (FX) intervention policy in response to a positive terms of trade shock and associated Dutch disease episode in a small open economy model. We find that during a Dutch disease episode tradable production drops below the socially optimal level, resulting in lower...

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Bibliographic Details
Main Author: Faltermeier, Julia
Other Authors: Lama, Ruy, Medina, Juan
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2017.
Series:IMF Working Papers; Working Paper ; No. 2017/070
Online Access:Full text available on IMF