Choices of optimal monetary policy instruments under the floating and the basket-peg regimes

Naoyuki Yoshino, Sahoko Kaji, Tamon Asonuma

研究成果: Article査読

10 被引用数 (Scopus)

抄録

This paper determines whether adopting the basket-peg rather than the floating regime is optimal for emerging market countries. Under the basket-peg regime, there is a trade-off between practical usefulness and welfare losses associated with capital movements across countries. We develop a dynamic stochastic general equilibrium model for small open economies to derive a simple basket weight rule. Although this is suboptimal, we find it practical and easy to implement. With calibration using Singaporean and Thai data for 1997Q3-2006Q2 and comparison among cumulative losses associated with the policy instrument rules, we show that a commitment to the basket weight rule is superior to other instrument rules under the floating regime for small, open emerging market countries like Singapore and Thailand.

本文言語English
論文番号1250024
ジャーナルSingapore Economic Review
57
4
DOI
出版ステータスPublished - 2012 12月

ASJC Scopus subject areas

  • 経済学、計量経済学

フィンガープリント

「Choices of optimal monetary policy instruments under the floating and the basket-peg regimes」の研究トピックを掘り下げます。これらがまとまってユニークなフィンガープリントを構成します。

引用スタイル