G2TT
来源类型Discussion paper
规范类型论文
来源IDDP14030
DP14030 Monetary policy for commodity booms and busts
Thomas Drechsel; Michael McLeay; Silvana Tenreyro
发表日期2019-09-29
出版年2019
语种英语
摘要Macroeconomic volatility in commodity-exporting economies is closely tied to fluctuations in international commodity prices. Commodity booms improve exporters' terms of trade and loosen their borrowing conditions, while busts lead to the reverse. This paper studies optimal monetary policy for commodity exporters in a small open economy framework that includes a key role for financial conditions. We incorporate the interaction between the commodity and financial cycles via a working capital constraint for commodity producers, which loosens as commodity prices increase. A rise in global commodity prices causes an inefficient reallocation towards the commodity sector, which expands and increases its demand for inputs. The real exchange-rate appreciates, but because domestic fims do not internalize that the appreciation reduces the scale of the reallocation, they do not raise prices enough. An inefficient boom takes place, with inflation rising and output increasing relative to its welfare-maximizing level. Returning inflation to target is not sufficient to close the output gap, leaving the policymaker facing a stabilization tradeoff. The optimal policy lets the exchange rate appreciate and raises interest rates, with a larger rate rise required the greater the loosening in borrowing conditions. The paper compares alternative policy rules and discusses a key practical challenge for emerging and developing economies: how to transition to a stable path from initial conditions of high and persistent inflation.
主题International Macroeconomics and Finance ; Monetary Economics and Fluctuations
关键词monetary policy Small open economy Commodity prices Exchange rates Commodity financialization
URLhttps://cepr.org/publications/dp14030
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/542918
推荐引用方式
GB/T 7714
Thomas Drechsel,Michael McLeay,Silvana Tenreyro. DP14030 Monetary policy for commodity booms and busts. 2019.
条目包含的文件
条目无相关文件。
个性服务
推荐该条目
保存到收藏夹
导出为Endnote文件
谷歌学术
谷歌学术中相似的文章
[Thomas Drechsel]的文章
[Michael McLeay]的文章
[Silvana Tenreyro]的文章
百度学术
百度学术中相似的文章
[Thomas Drechsel]的文章
[Michael McLeay]的文章
[Silvana Tenreyro]的文章
必应学术
必应学术中相似的文章
[Thomas Drechsel]的文章
[Michael McLeay]的文章
[Silvana Tenreyro]的文章
相关权益政策
暂无数据
收藏/分享

除非特别说明,本系统中所有内容都受版权保护,并保留所有权利。