Do Monetary Policy Frameworks Matter in Low Income Countries?

Do Monetary Policy Frameworks Matter in Low Income Countries?
Author :
Publisher :
Total Pages : 0
Release :
ISBN-10 : OCLC:1240733206
ISBN-13 :
Rating : 4/5 (06 Downloads)

Book Synopsis Do Monetary Policy Frameworks Matter in Low Income Countries? by : Alina Carare

Download or read book Do Monetary Policy Frameworks Matter in Low Income Countries? written by Alina Carare and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Microeconomic evidence indicates a very high frequency of price adjustment in low income countries (LICs), raising the question of whether LICs may be reasonably characterized as exhibiting monetary neutrality. To address this question, we analyze a cross-country panel dataset of 79 LICs over the period 1990 to 2015 to assess the impact of external shocks on real GDP growth, and we find highly significant differences between LICs where the central bank targets monetary aggregates or inflation compared to LICs that maintain rigid nominal exchange rates. We also conduct an event study of the surprise devaluation of the Central African Franc (CFA) in January 1994 and find that it had highly significant effects on the output growth of 10 CFA countries relative to 18 similar countries outside the CFA zone. Consequently, the hypothesis of monetary neutrality is decisively rejected, and these findings provide strong support for the role of monetary policy frameworks in fostering price stability and macroeconomic stability in LICs.


Do Monetary Policy Frameworks Matter in Low Income Countries? Related Books

Do Monetary Policy Frameworks Matter in Low Income Countries?
Language: en
Pages: 0
Authors: Alina Carare
Categories: Anti-inflationary policies
Type: BOOK - Published: 2021 - Publisher:

DOWNLOAD EBOOK

Microeconomic evidence indicates a very high frequency of price adjustment in low income countries (LICs), raising the question of whether LICs may be reasonabl
Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries
Language: en
Pages: 74
Authors: International Monetary Fund
Categories: Business & Economics
Type: BOOK - Published: 2015-10-23 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

Over the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial mar
Conditionality in Evolving Monetary Policy Regimes
Language: en
Pages: 61
Authors: International Monetary Fund
Categories: Business & Economics
Type: BOOK - Published: 2014-05-03 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

With single-digit inflation and substantial financial deepening, developing countries are adopting more flexible and forward-looking monetary policy frameworks
Monetary Policy Transmission in Emerging Markets and Developing Economies
Language: en
Pages: 54
Authors: Mr.Luis Brandao-Marques
Categories: Business & Economics
Type: BOOK - Published: 2020-02-21 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

Central banks in emerging and developing economies (EMDEs) have been modernizing their monetary policy frameworks, often moving toward inflation targeting (IT).
Distributional Effects of Monetary Policy
Language: en
Pages: 47
Authors: Valentina Bonifacio
Categories: Business & Economics
Type: BOOK - Published: 2021-07-30 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

As central banks across the globe have responded to the COVID-19 shock by rounds of extensive monetary loosening, concerns about their inequality impact have gr