Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/278675 
Erscheinungsjahr: 
2023
Schriftenreihe/Nr.: 
ECB Working Paper No. 2843
Verlag: 
European Central Bank (ECB), Frankfurt a. M.
Zusammenfassung: 
How should monetary policy respond to excessive capital inflows that appreciate the currency and widen the external deficit? Using the workhorse two-country open-macro model, we derive a quadratic approximation of the utility-based global loss function in incomplete market economies, and solve for the optimal targeting rules under cooperation. The optimal monetary stance is expansionary if the exchange rate pass-through (ERPT) on import prices is complete, contractionary if nominal rigidities attenuate ERPT. Excessive capital inflows, however, may lead to currency undervaluation instead of overvaluation for some parameter values. The optimal stance is then invariably expansionary to support domestic demand.
Schlagwörter: 
Currency misalignment
trade imbalances
asset markets and risk sharing
optimal targeting rules
international policy cooperation
exchange rate pass-through
JEL: 
E44
E52
E61
F41
F42
Persistent Identifier der Erstveröffentlichung: 
ISBN: 
978-92-899-6128-8
Dokumentart: 
Working Paper

Datei(en):
Datei
Größe
1.81 MB





Publikationen in EconStor sind urheberrechtlich geschützt.