Artikel

Do capital flows matter for monetary policy setting in inflation targeting economies?

The aim of this study is to determine if capital flows can account for the international effects on domestic monetary policy, using an augmented Taylor rule model. In addition to the standard determinants of nominal interest rates, we include capital flow measures to show how central banks consider this important factor when deciding on the most appropriate monetary policy. Using a panel of inflation targeting economies and the dynamic panel approach, this study finds that capital inflows and outflows are an important determinant of nominal interest rates.

Language
Englisch

Bibliographic citation
Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 13 ; Year: 2020 ; Issue: 7 ; Pages: 1-16 ; Basel: MDPI

Classification
Wirtschaft
Subject
capital flow
interest rate
Taylor rule

Event
Geistige Schöpfung
(who)
Arimurti, Trinil
Morley, Bruce
Event
Veröffentlichung
(who)
MDPI
(where)
Basel
(when)
2020

DOI
doi:10.3390/jrfm13070139
Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Arimurti, Trinil
  • Morley, Bruce
  • MDPI

Time of origin

  • 2020

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