| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP2473
|
| DP2473 Sectors and the OECD Business Cycle |
| Jean Imbs
|
| 发表日期 | 2000-06-27
|
| 出版年 | 2000
|
| 语种 | 英语
|
| 摘要 | This paper develops a welfare-based model of monetary policy in an open economy. We focus on the extent to which monetary policy should be employed in maintaining the exchange rate. The traditional approach maintains that exchange rate flexibility is desirable in the presence of real country-specific shocks that require adjustment in relative prices. However, in the light of empirical evidence on nominal price response to exchange-rate changes - specifically, that there appears to be a large degree of local-currency pricing in industrialized countries - the expenditure-switching role played by nominal exchange rates may be exaggerated in the traditional literature. In the presence of local-currency pricing, we find that optimal monetary policy in response to real shocks pricing is fully consistent with fixed exchange rates. On the other hand, when real country-specific shocks are not important, and when a country's monetary sector is stable, the case for freely floating rates (a monetary policy in which exchange rates are not a consideration) is strengthened in the presence of local-currency pricing. |
| 主题 | International Macroeconomics
|
| 关键词 | Expenditure switching
Flexible exchange rates
Local currency pricing
monetary policy
|
| URL | https://cepr.org/publications/dp2473
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/531551
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推荐引用方式
GB/T 7714 |
Jean Imbs. DP2473 Sectors and the OECD Business Cycle. 2000.
|
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