Inflation in emerging markets driven by exchange rates: IMF study
An IMF paper published on Thursday says the exchange rate monetary policy channel is the most effective mechanism through which monetary policy impacts inflation in emerging market countries.
Rudrani Bhattacharya, Ila Patnaik and Ajay Shah, the paper's authors, explore the effects of monetary policy in India on aggregate demand and the exchange rate pass-through, which is measured here by the percentage change in domestic prices resulting from a 1% change in the exchange rate.
Bhattacharya
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Monetary Policy
Norges Bank governor explores monetary policy tradeoffs
Demand channel requires greater unemployment than currency channel, Bache argues
Russia hikes rates by 200bp
Central bank is forced to update its outlook in face of soaring inflation
Bank of Canada cuts policy rate by 50bp
Governor says further cuts likely as bank puts emphasis on keeping inflation stable
ECB could go below r* when setting policy, says Panetta
Bank of Italy governor says eurozone has to return to “normal way of doing monetary policy”
How to allocate rate hikes ‘keeps me awake 24/7’, says BoJ’s Ueda
Governor reflects on past steps in policy normalisation and Japan’s ageing population
Hungary holds rates again after September cut
Geopolitics prompt “careful, patient” monetary policy, says deputy governor
Bank of Thailand official calls for more flexible inflation targeting
Deputy governor says excessive policy fine-tuning can be counterproductive
IMF warns central banks not to keep policy ‘too tight for too long’
Chief economist calls for “triple pivot” as global economic outlook shifts