Hidden Bibliographic Details
Other authors / contributors: | Li, Shujing, author.
Yan, Isabel K., author.
International Monetary Fund. Research Department.
|
ISBN: | 128351172X 9781283511728
|
Notes: | Includes bibliographical references. Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
|
Summary: | This paper analyzes a small open economy model under inflation targeting. It shows why such a monetary regime is vulnerable to speculative attacks that take place over a short period rather than instantaneously. The speed at which the regime collapses, and the extent of reserve losses, are increasing in the central bank's explicit or implicit commitment to intervene in the foreign exchange market. Attacks are therefore ranked, from most to least severe, as follows: Exchange rate targeting, CPI inflation targeting, domestic nontradables inflation targeting, and money targeting. Under inflation targeting the size of the attack is increasing in the tradables consumption share.
|
Other form: | Print version: Kumhof, Michael. Balance of payments crises under inflation targeting. [Washington, D.C.] : International Monetary Fund, Research Dept., 2007
|