Working Papers in full text
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
All
Other research-related activities and publications of the IMF can be found at IMF Research
|
Free Email Notification
Receive emails when we post new
items of interest to you.
Subscribe or
Modify your profile
|
|
|
|
Monetary Rules for Emerging Market Economies
|
Author/Editor: |
Ghironi, Fabio | Rebucci, Alessandro |
| Authorized for Distribution: |
February 1, 2002 |
|
Electronic Access: |
Free Full Text (PDF file size is 1,316KB)
Use the free Adobe Acrobat Reader to view this PDF file.
|
|
|
|
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
|
|
Summary: We compare the performance of a currency board, inflation targeting, and dollarization in a small, open developing economy with a liberalized capital account. We focus on the transmission of shocks to currency and country risk premia and on the role of fluctuations in premia in the propagation of other shocks. We calibrate our model on Argentina. The framework matches the second moments of key variables well. Welfare analysis suggests that dollarization is preferable to alternative regimes because it removes currency premium volatility. However, a currency board can match dollarization on welfare grounds if the central bank holds a sufficiently large stock of foreign reserves.
|
|
|
|
Series: |
Working Paper No. 02/34 |
|
Subject(s): |
Monetary policy | Argentina | Emerging markets | Business cycles | Exchange risk | Social policy | Economic models |
|
Author's keyword(s): |
Argentina | business cycles | emerging markets | monetary rules | risk premia | welfare |
|
|
|
|
| |
Published: |
|
February 1, 2002 |
|
|
|
|
| |
ISBN/ISSN: |
|
1934-7073 |
|
Format: |
|
Paper |
| |
Stock No: |
|
WPIEA0342002 |
|
Pages: |
|
41 |
| |
Price: |
|
US$15.00
|
|
|
|
|
|
| |
|
|
|
Price Delivery Note: |
Prepayment required for individual copies. An annual subscription is $375.00 a year. It includes 12 monthly shipments and priority mail delivery. The Stock No. for the subscription is WPEA. |
|
Please address any questions about this title to publications@imf.org.
|
|
