Arbeitspapier
Financial Instability and Optimal Monetary Policy Rule
This paper investigates the effect of financial instability on the design of monetary policy rule for a small open economy. We find evidence that optimal monetary policy rule reacts directly to financial imbalances and, as a result, to the real exchange rate movements. However, optimal rule would not react to the real exchange rate changes directly if central bank does not care about the financial instability. For a quantitative analysis, impulse responses of some macroeconomic variables and financial instability to the domestic productivity and foreign country output shocks, resulting from simulation, are also analysed in this paper.
- Sprache
-
Englisch
- Erschienen in
-
Series: FIW Working Paper ; No. 42
- Klassifikation
-
Wirtschaft
Monetary Policy
Financial Crises
- Thema
-
Financial instability
Optimal monetary policy rule
Real exchange rate
Open economy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Sedghi-Khorasgani, Hossein
- Ereignis
-
Veröffentlichung
- (wer)
-
FIW - Research Centre International Economics
- (wo)
-
Vienna
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Sedghi-Khorasgani, Hossein
- FIW - Research Centre International Economics
Entstanden
- 2010
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