Arbeitspapier
Incomplete Exchange Rate Pass-Through and Simple Monetary Policy Rules
This paper investigates the performance of various monetary rules in an open economy with incomplete exchange rate pass-through. Implementing monetary policy through an exchange rate augmented policy rule does not improve social welfare compared to using an optimized Taylor rule, irrespective of the degree of pass-through. A direct exchange rate response improves welfare only if the other reaction coefficients, on inflation and output, are sub-optimal. However, an indirect exchange rate response, through a policy reaction to Consumer Price Index (CPI) inflation rather than to domestic inflation, is welfare enhancing. This result is independent of whether society values domestic or CPI inflation stabilization.
- Sprache
-
Englisch
- Erschienen in
-
Series: Sveriges Riksbank Working Paper Series ; No. 136
- Klassifikation
-
Wirtschaft
Monetary Policy
Central Banks and Their Policies
Open Economy Macroeconomics
- Thema
-
Exchange rate pass-through
monetary policy
simple policy rules
small open economy
Taylor rule
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Adolfson, Malin
- Ereignis
-
Veröffentlichung
- (wer)
-
Sveriges Riksbank
- (wo)
-
Stockholm
- (wann)
-
2002
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Adolfson, Malin
- Sveriges Riksbank
Entstanden
- 2002
Ähnliche Objekte (12)
Monetary Policy with Incomplete Exchange Rate Pass-Through
Implications of Exchange Rate Objectives under Incomplete Exchange Rate Pass-Through
Simple Monetary Policy Rules and Exchange Rate Uncertainty
Bayesian Estimation of an Open Economy DSGE Model with Incomplete Pass-Through
Output gaps and robust monetary policy rules
Inflation targeting as a monetary policy rule
Schweden, 1 Krone
Schweden, 1 Krone
Geldschein, 1 Krona, 1874
Geldschein, 1 Krona, 1914
State Dependent Pricing and Exchange Rate Pass-Through
Conditional exchange rate pass-through: Evidence from Sweden
Monetary Policy with Incomplete Exchange Rate Pass-Through
Implications of Exchange Rate Objectives under Incomplete Exchange Rate Pass-Through
Simple Monetary Policy Rules and Exchange Rate Uncertainty
Bayesian Estimation of an Open Economy DSGE Model with Incomplete Pass-Through
Output gaps and robust monetary policy rules
Inflation targeting as a monetary policy rule
Schweden, 1 Krone
Schweden, 1 Krone
Geldschein, 1 Krona, 1874
Geldschein, 1 Krona, 1914
State Dependent Pricing and Exchange Rate Pass-Through
Conditional exchange rate pass-through: Evidence from Sweden
Monetary Policy with Incomplete Exchange Rate Pass-Through
Implications of Exchange Rate Objectives under Incomplete Exchange Rate Pass-Through
Simple Monetary Policy Rules and Exchange Rate Uncertainty
Bayesian Estimation of an Open Economy DSGE Model with Incomplete Pass-Through
Output gaps and robust monetary policy rules
Inflation targeting as a monetary policy rule
Schweden, 1 Krone
Schweden, 1 Krone
Geldschein, 1 Krona, 1874
Geldschein, 1 Krona, 1914
State Dependent Pricing and Exchange Rate Pass-Through