Foreign Exchange Intervention as a Monetary Policy Instrument Evidence for Inflation Targeting Countries
Foreign exchange intervention is frequently being used by central banks in countries which have a floating exchange rate. Most theoretical monetary policy models, however, do not take this phenomenon into account. This book contributes to closing this gap between theory and practice by interpreting...
| Main Author: | |
|---|---|
| Format: | eBook |
| Language: | English |
| Published: |
Heidelberg
Physica-Verlag HD
2004, 2004
|
| Edition: | 1st ed. 2004 |
| Series: | ZEW Economic Studies
|
| Subjects: | |
| Online Access: | |
| Collection: | Springer Book Archives -2004 - Collection details see MPG.ReNa |
Table of Contents:
- 1 Introduction
- 1.1 Background
- 1.2 Approach to the Problem and Research Strategy
- 1.3 Structure of the Analysis
- 2 The Conventional View on Inflation Targeting
- 2.1 Definition and Elements of Inflation Targeting
- 2.2 Adoption of Inflation Targeting
- 2.3 A Basic Model for (Closed-Economy) Inflation Targeting
- 2.4 Open Economy Inflation Targeting
- 3 Uncovered Interest Parity in Practice
- 3.1 The Rationale of Interest Parity
- 3.2 An Empirical Test for Inflation Targeting Countries
- 3.3 Consequences of the Failure of UIP
- 4 Sterilised Interventions as an Additional Policy Instrument
- 4.1 Explaining and Interpreting Sterilised Interventions
- 4.2 The Effectiveness of Sterilised Interventions: A Review of the Literature
- 5 Sterilised Foreign Exchange Intervention in Practice
- 5.1 Foreign Exchange Reserves as an Intervention Proxy
- 5.2 Intervention Activity in Inflation Targeting Countries
- 5.3 The Use of Interventions as an Additional Policy Instrument
- 5.4 Short Case Studies of the Country Experiences
- 6 Performance of Inflation Targeting: An Evaluation
- 7 Conclusion and Outlook
- List of Figures
- List of Tables