02192cas a2200277 a 4500 AALejournalIMF021085 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513549729 1018-5941 BD-DhAAL BD-DhAAL Basu, Suman. A Conceptual Model for the Integrated Policy Framework / Suman Basu, Emine Boz, Gita Gopinath, Francisco Roch. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (157 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 In the Mundell-Fleming framework, standard monetary policy and exchange rate flexibility fully insulate economies from shocks. However, that framework abstracts from many real world imperfections, and countries often resort to unconventional policies to cope with shocks, such as COVID-19. This paper develops a model of optimal monetary policy, capital controls, foreign exchange intervention, and macroprudential policy. It incorporates many shocks and allows countries to differ across the currency of trade invoicing, degree of currency mismatches, tightness of external and domestic borrowing constraints, and depth of foreign exchange markets. The analysis maps these shocks and country characteristics to optimal policies, and yields several principles. If an additional instrument becomes available, it should not necessarily be deployed because it may not be the right tool to address the imperfection at hand. The use of a new instrument can lead to more or less use of others as instruments interact in non-trivial ways. Mode of access: Internet Boz, Emine. Gopinath, Gita. Roch, Francisco. IMF Working Papers; Working Paper ; No. 2020/121 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/121/001.2020.issue-121-en.xml IMF e-Library