Some Implications for Monetary Policy of Uncertain Exchange Rate Pass-Through / Benjamin Hunt, Peter Isard.
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| Online Access: |
Full Text (via IMF e-Library) |
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| Format: | eBook |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
2003.
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| Series: | IMF working paper ;
WP/2003/025. |
| Abstract: | The paper uses MULTIMOD to examine the implications of uncertain exchange rate pass-through for the conduct of monetary policy. From the policymaker's perspective, uncertainty about exchange rate pass-through implies uncertainty about policy multipliers and the impact of state variables on stabilization objectives. When faced with uncertainty about the strength of exchange rate pass-through, policymakers will make less costly errors by overestimating the strength of pass-through rather than underestimating it. The analysis suggests that pass-through uncertainty of the magnitude considered does not result in efficient policy response coefficients that are smaller than those under certainty. |
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| Physical Description: | 1 online resource (36 pages) |
| ISSN: | 1018-5941 |
| Source of Description, Etc. Note: | Description based on print version record. |