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). text 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 Statistics |
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 |