Accumulating Foreign Reserves Under Floating Exchange Rates
Object category:
Elektronische Ressource
Person/Institution:
Publisher:
International Monetary Fund
Place of publication:
Washington, D.C
Date:
2008
Extent, illustration, format:
Online-Ressource (41 p)
Language:
Englisch
Providing institution:
Additional information
Abstract:
Official accumulation of foreign reserves may be perceived as interventions to influence the exchange rate, undermining the credibility of floating exchange rates and inflation targets. This paper develops a theoretical framework to study the interaction between reserve accumulation and monetary policy. The model uncovers a trade-off between the speed of reserve accumulation and anti-inflationary credibility. Under reasonable assumptions, delegation of intervention and monetary policy decisions to separate government agencies allows faster reserve accumulation, while centralization of these decisions results in a more stable economy. The analysis underscores the importance of rather overlooked institutional features of policymaking in open economies
Object text:
Gonçalves, Fernando M
Online-Ausg.
Online-Ausg.
Access and usage options
Contact
Universität Erfurt
Forschungsbibliothek Gotha
Schloss Friedenstein
Schlossplatz 1
99867 Gotha
+49 361 737-5540
bibliothek.gotha(at)uni-erfurt.de
Forschungsbibliothek Gotha
Schloss Friedenstein
Schlossplatz 1
99867 Gotha
+49 361 737-5540
bibliothek.gotha(at)uni-erfurt.de
Administrative details
Created:
2023-04-13
Last changed:
2023-01-26
Added to portal:
2023-04-13
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