全球智库信息集成服务系统(G2TT): DP7003 The International Dimension of Productivity and Demand Shocks in the US Economy

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP7003
	DP7003 The International Dimension of Productivity and Demand Shocks in the US Economy
	Giancarlo Corsetti; Luca Dedola; Sylvain Leduc
发表日期	2008-10-17
出版年	2008
语种	英语
摘要	Financial globalization has seen the emergence of a new monetary standard based on inflation targeting. At the same time the most financially advanced economies moved away from exchange rate targeting which also characterized the previous era of globalization - the era of the Classical Gold Standard. Does the new financial environment of free capital flows constrain the independence of central banks to conduct monetary policy? We argue, and show empirically, that credible inflation targeting allows central banks to conduct an independent monetary policy as manifested in their ability to deviate from the world (Fed) interest rate. This new regime, with exchange rate flexibility, generates sufficient short term volatility that prevents short term arbitrage against central banks that deviate from the Fed rate. In contrast, during the Gold Standard only limited deviation was possible within the 'gold points'. On the other hand, the credibility of inflation targeting regime is as good as gold in anchoring inflation expectations for the long run as manifested in strong co-movement and similar levels of long term borrowing rates- just as was the case during the gold standard. We conclude that inflation targeting allows more flexibility than the Gold Standard to conduct monetary policy in the short run and has similar benefits for long term stability. We suggest that it is the new golden rule.
主题	International Macroeconomics
关键词	Credibility Exchange rate variability Gold standard Inflation targeting
URL	https://cepr.org/publications/dp7003
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/535823
推荐引用方式 GB/T 7714	Giancarlo Corsetti,Luca Dedola,Sylvain Leduc. DP7003 The International Dimension of Productivity and Demand Shocks in the US Economy. 2008.