Direct and Spillover Effects of Unconventional Monetary and Exchange Rate Policies /

This paper explores the effects of unconventional monetary and exchange rate policies. We find that official foreign asset purchases have large effects on current accounts that diminish as capital mobility rises and spill over to financially integrated countries. There is an additional effect throug...

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Autore principale: Gagnon, Joseph
Altri autori: Bayoumi, Tamim, Londono, Juan, Saborowski, Christian
Natura: Periodico
Lingua:English
Pubblicazione: Washington, D.C. : International Monetary Fund, 2017.
Serie:IMF Working Papers; Working Paper ; No. 2017/056
Accesso online:Full text available on IMF
Descrizione
Riassunto:This paper explores the effects of unconventional monetary and exchange rate policies. We find that official foreign asset purchases have large effects on current accounts that diminish as capital mobility rises and spill over to financially integrated countries. There is an additional effect through the stock of central bank assets. Domestic asset purchases have an effect on current accounts only when capital mobility is low. We also find that rising US bond yields drive foreign yields, stock prices and depreciations, but less so on days of policy announcements. We develop a theoretical model that is broadly consistent with our results.
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Descrizione fisica:1 online resource (52 pages)
Natura:Mode of access: Internet
ISSN:1018-5941
Accesso:Electronic access restricted to authorized BRAC University faculty, staff and students