Monetary Policy Under a Currency Board
Data(s) |
01/09/2007
|
---|---|
Resumo |
The consensus view is that central banks under currency boards do not have tools for active monetary policy. In this paper, we analyze the foreign exchange fee as a monetary policy instrument that can be used by a central bank under a currency board. We develop a general equilibrium model showing that changes in this fee may have the same effects as a change in the monetary policy stance. Thus central banks under the currency board are shown to have an avenue to implement active monetary policy. |
Formato |
application/pdf |
Identificador |
http://digitalcommons.uconn.edu/econ_wpapers/200734 http://digitalcommons.uconn.edu/cgi/viewcontent.cgi?article=1183&context=econ_wpapers |
Publicador |
DigitalCommons@UConn |
Fonte |
Economics Working Papers |
Palavras-Chave | #interbank market #monetary policy #currency board #Economics |
Tipo |
text |