A Quantitative Model for the Integrated Policy Framework /

Many central banks have relied on a range of policy tools, including foreign exchange intervention (FXI) and capital flow management tools (CFMs), to mitigate the effects of volatile capital flows on their economies. We develop an empirically-oriented New Keynesian model to evaluate and quantify how...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Adrian, Tobias
مؤلفون آخرون: Erceg, Christopher, Linde, Jesper, Zabczyk, Pawel
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2020.
سلاسل:IMF Working Papers; Working Paper ; No. 2020/122
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:Many central banks have relied on a range of policy tools, including foreign exchange intervention (FXI) and capital flow management tools (CFMs), to mitigate the effects of volatile capital flows on their economies. We develop an empirically-oriented New Keynesian model to evaluate and quantify how using multiple policy tools can potentially improve monetary policy tradeoffs. Our model embeds nonlinear balance sheet channels and includes a range of empirically-relevant frictions. We show that FXI and CFMs may improve policy tradeoffs under certain conditions, especially for economies with less well-anchored inflation expectations, substantial foreign currency mismatch, and that are more vulnerable to shocks likely to induce capital outflows and exchange rate pressures.
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وصف مادي:1 online resource (56 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students