Title Intervention under inflation targeting [electronic resource] : when could it make sense? / by David Hofman, Marcos Chamon, Pragyan Deb, Thomas Harjes, Umang Rawat, and Itaru Yamamoto.
Imprint [Washington, D.C.] : International Monetary Fund, 2020.©2020
Author Hofman, David (David J. V.) author.
Chamon, Marcos. author.
Deb, Pragyan. author.
Harjes, Thomas, 1969- author.
Rawat, Umang. author.
Yamamoto, Itaru. author.
International Monetary Fund . issuing body.
Date 01-01-2020
Physical description 1 online resource (22 pages).
online resource
Series IMF working paper ; no. 20/9
IMF working paper ; no. 20/9.
Item WEB (Copy 1) INTRANET 1254832-1001 ONLINE
URL Available from internal network: http://err.parl.net/client/en_GB/search/asset/79994/0
Major subject Inflation
Transition economies
Monetary policy
Exchange rate management
Central banks
Minor subject Overseas item
Notes "January 2020"
Includes bibliographical references.
ISBN 9781513526027
Abstract We investigate the motives inflation-targeting central banks in emerging markets may have for intervening in foreign exchange markets and evaluate the case for such interventions based on the existing literature. Our findings suggest that the rationale for interventions depends on initial conditions and country-specific circumstances. The case is strongest in the presence of large currency mismatches or underdeveloped markets. While interventions can have benefits in the short-term, sustained over time they could entrench unfavorable initial conditions, though more work is needed to establish this empirically. A first effort to measure the cost of interventions to the credibility of policy frameworks suggests that the negative impact may be smaller than often assumed - at least for the set of more sophisticated inflation-targeting emerging-market central banks considered here.
LCN 1254832
Item ID 1254832-1001
Database Library Catalogue