Monetary Policy Under an Exchange Rate Anchor /

This paper argues that there is scope for monetary policy under an exchange rate anchor, and discusses the related monetary policy design and implementation. It shows that the exchange rate can be used as the main monetary policy instrument while the policy rate can target the exchange rate. An exch...

Täydet tiedot

Bibliografiset tiedot
Päätekijä: El Hamiani Khatat, Mariam
Muut tekijät: Buessings-Loercks, Mark, Fleuriet, Vincent
Aineistotyyppi: Aikakauslehti
Kieli:English
Julkaistu: Washington, D.C. : International Monetary Fund, 2020.
Sarja:IMF Working Papers; Working Paper ; No. 2020/180
Linkit:Full text available on IMF
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020 |z 9781513556383 
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100 1 |a El Hamiani Khatat, Mariam. 
245 1 0 |a Monetary Policy Under an Exchange Rate Anchor /  |c Mariam El Hamiani Khatat, Mark Buessings-Loercks, Vincent Fleuriet. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2020. 
300 |a 1 online resource (47 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper argues that there is scope for monetary policy under an exchange rate anchor, and discusses the related monetary policy design and implementation. It shows that the exchange rate can be used as the main monetary policy instrument while the policy rate can target the exchange rate. An exchange rate anchor is compatible with an inflation objective, provided fiscal dominance is not an issue, monetary conditions are supportive of the peg, and the level of international reserves is adequate. The paper argues that, while an exchange rate anchor is more prone to policy inconsistencies, there is ample scope for strengthening monetary policy design and implementation under soft pegs. In that context, the principles of dichotomy and interest rate parity are critical. 
538 |a Mode of access: Internet 
700 1 |a Buessings-Loercks, Mark. 
700 1 |a Fleuriet, Vincent. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2020/180 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2020/180/001.2020.issue-180-en.xml  |z IMF e-Library