The Influence of External Factors on Monetary Policy Frameworks and Operations
Title | The Influence of External Factors on Monetary Policy Frameworks and Operations PDF eBook |
Author | |
Publisher | |
Pages | 347 |
Release | 2011 |
Genre | Foreign exchange rates |
ISBN | 9789291318865 |
The Influence of External Factors on Monetary Policy Frameworks and Operations
Title | The Influence of External Factors on Monetary Policy Frameworks and Operations PDF eBook |
Author | |
Publisher | |
Pages | 347 |
Release | 2011 |
Genre | |
ISBN | 9789291978861 |
The Influence of External Factors on Monetary Policy Frameworks and Operations
Title | The Influence of External Factors on Monetary Policy Frameworks and Operations PDF eBook |
Author | Renzo Rossini |
Publisher | |
Pages | 350 |
Release | 2014 |
Genre | |
ISBN |
Economic and financial integration has reshaped the monetary policy frameworks and transmission channels in the emerging market economies (EMEs) over the past two decades. Economic and financial linkages have become stronger, resulting in greater synchronization of business cycles across advanced and emerging market economies. This has led to the faster transmission of shocks, especially through financial channels. Against this background, the 16th annual meeting of Deputy Governors from the major emerging market economies, held at the BIS in Basel in February 2011, addressed the question of how external factors had affected monetary policy in EMEs over the past few years. The present volume brings together papers prepared for that meeting. The discussion was organized around four broad topics: international banks, new liquidity rules and monetary policy in EMEs; exchange rates and monetary policy frameworks in EMEs; the implications of foreign exchange market intervention for central bank balance sheets; and additional supporting policies that central banks can use to address the policy dilemmas from the influence of external factors. One of the main conclusions of the meeting was that financial globalization has multiplied the number of transmission channels and associated risks through which external factors influence domestic economic and financial conditions in EMEs. This complicates the assessment of the outlook for inflation and growth. It also introduces an additional dimension - the evaluation of financial stability risks - to the objectives of central banks. Monetary policy in EMEs has become much more complex as a result.
Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries
Title | Evolving Monetary Policy Frameworks in Low-Income and Other Developing Countries PDF eBook |
Author | International Monetary Fund |
Publisher | International Monetary Fund |
Pages | 74 |
Release | 2015-10-23 |
Genre | Business & Economics |
ISBN | 1498344062 |
Over the past two decades, many low- and lower-middle income countries (LLMICs) have improved control over fiscal policy, liberalized and deepened financial markets, and stabilized inflation at moderate levels. Monetary policy frameworks that have helped achieve these ends are being challenged by continued financial development and increased exposure to global capital markets. Many policymakers aspire to move beyond the basics of stability to implement monetary policy frameworks that better anchor inflation and promote macroeconomic stability and growth. Many of these LLMICs are thus considering and implementing improvements to their monetary policy frameworks. The recent successes of some LLMICs and the experiences of emerging and advanced economies, both early in their policy modernization process and following the global financial crisis, are valuable in identifying desirable features of such frameworks. This paper draws on those lessons to provide guidance on key elements of effective monetary policy frameworks for LLMICs.
Conditionality in Evolving Monetary Policy Regimes
Title | Conditionality in Evolving Monetary Policy Regimes PDF eBook |
Author | International Monetary Fund |
Publisher | International Monetary Fund |
Pages | 61 |
Release | 2014-05-03 |
Genre | Business & Economics |
ISBN | 1498343694 |
With single-digit inflation and substantial financial deepening, developing countries are adopting more flexible and forward-looking monetary policy frameworks and ascribing a greater role to policy interest rates and inflation objectives. While some countries have adopted formal inflation targeting regimes, others have developed frameworks with greater target flexibility to accommodate changing money demand, use of policy rates to signal the monetary policy stance, and implicit inflation targets.
Monetary Policy Implementation: Operational Issues for Countries with Evolving Monetary Policy Frameworks
Title | Monetary Policy Implementation: Operational Issues for Countries with Evolving Monetary Policy Frameworks PDF eBook |
Author | Nils Mæhle |
Publisher | International Monetary Fund |
Pages | 57 |
Release | 2020-02-07 |
Genre | Business & Economics |
ISBN | 1513526855 |
This paper discusses operational issues for countries that want to reform their monetary policy frameworks. It argues that stabilizing short-term interest rates on a day-to-day basis has significant advantages, and thus that short-term interest rates, not reserve money, in most cases should be the daily operating target, including for countries relying on a money targeting policy strategy. The paper discusses how a policy formulation framework based on monetary aggregates can be combined with an operational framework that ensures more stable and predictable short-term rates to enhance policy transmission. It also discusses how to best configure an interest-rate-based operational framework when markets are underdeveloped and liqudity management capacity is weak.
Coordination of Monetary and Fiscal Policies
Title | Coordination of Monetary and Fiscal Policies PDF eBook |
Author | International Monetary Fund |
Publisher | International Monetary Fund |
Pages | 33 |
Release | 1998-03-01 |
Genre | Business & Economics |
ISBN | 1451844239 |
Recently, monetary authorities have increasingly focused on implementing policies to ensure price stability and strengthen central bank independence. Simultaneously, in the fiscal area, market development has allowed public debt managers to focus more on cost minimization. This “divorce” of monetary and debt management functions in no way lessens the need for effective coordination of monetary and fiscal policy if overall economic performance is to be optimized and maintained in the long term. This paper analyzes these issues based on a review of the relevant literature and of country experiences from an institutional and operational perspective.