Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68113
Authors: 
Sánchez-Fung, José R.
Year of Publication: 
2002
Series/Report no.: 
Department of Economics Discussion Paper, University of Kent 02,01
Abstract: 
This paper specifies and estimates a hybrid monetary policy base reaction function for the Dominican Republic (DR). The estimated reactions suggest that the Central Bank has been biased towards targeting the gap between the parallel and official exchange rates, apparently doing so in a more systematic fashion after the mid 1980s. Remarkably, these findings are in line with the Central Bank's long-standing endorsement of a multiple exchange rate regime, and could imply a process of learning, given the monetary authorities' preferences.
Subjects: 
monetary policy base reaction function
multiple exchange rates market
dynamic modelling
Dominican Republic
JEL: 
E52
E58
F41
Document Type: 
Working Paper

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