Monetary policy response to exchange rates: An empirical investigation
Küçük Resim Yok
Tarih
2016
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Econjournals
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
Notwithstanding exchange rate stability concerns in practice,exchange rate arguments are often omitted from monetary policy analysis and simple interest rate rules do not comprise exchange rate arguments even in small open economy set-ups. In order to identify the role of exchange rates in monetary policy conduct,we append them into a Taylor type of rule and examine their effect on policy interest rates in the US,UK,Canada,and Norway by utilizing general method of moments (GMM). The results suggest that for big and relatively closed economies,such as the US,exchange rate movements do not lead to significant response in policy interest rates. Nevertheless,for small open economies,both exchange rate variability and exchange rate levels are significant in monetary policy conduct. © 2016,Econjournals. All rights reserved.
Açıklama
Anahtar Kelimeler
Exchange rate stability, General method of moments method, Monetary policy
Kaynak
International Journal of Economics and Financial Issues
WoS Q Değeri
Scopus Q Değeri
N/A
Cilt
6
Sayı
4
