Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277406 
Year of Publication: 
2018
Citation: 
[Journal:] European Journal of Economics and Economic Policies: Intervention (EJEEP) [ISSN:] 2052-7772 [Volume:] 15 [Issue:] 1 [Year:] 2018 [Pages:] 71-90
Publisher: 
Edward Elgar Publishing, Cheltenham
Abstract: 
Inflation targeting, primary surpluses and a floating exchange rate under supply and exchange-rate shocks can combine to create deleterious effects on the economic dynamic. This paper reports on computer simulation experiments using a dynamic and stochastic model that can incorporate different restrictions. In general, the data show that under supply and exchange-rate shocks, a better method for minimising social loss includes flexible inflation targeting, counter-cyclical primary surpluses and capital control without eliminating the floating exchange rate.
Subjects: 
inflation targeting
primary surpluses
exchange-rate fluctuation
JEL: 
E52
E63
F32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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