Financial Globalization and Monetary Policy /

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 incomple...

Полное описание

Библиографические подробности
Главный автор: Devereux, Michael
Другие авторы: Sutherland, Alan
Формат: Журнал
Язык:English
Опубликовано: Washington, D.C. : International Monetary Fund, 2007.
Серии:IMF Working Papers; Working Paper ; No. 2007/279
Online-ссылка:Full text available on IMF
Описание
Итог: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.
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Объем:1 online resource (32 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students