Monetary Policy in Fossil Fuel Exporters: The Curse of Horizons

This paper examines the role of monetary policy in fossil fuel exporters at different horizons. The main argument is that central banks in these economies need to look beyond the horizon of the business cycle. In the short run, (independent) monetary policy should flexibly target inflation. In the m...

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Bibliographic Details
Main Author: Arezki, Rabah (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C The World Bank 2019
Series:World Bank E-Library Archive
Online Access:Volltext
Summary:This paper examines the role of monetary policy in fossil fuel exporters at different horizons. The main argument is that central banks in these economies need to look beyond the horizon of the business cycle. In the short run, (independent) monetary policy should flexibly target inflation. In the medium run, central banks need to coordinate with fiscal authorities to ensure that monetary policy operates around a credible and sustainable fiscal anchor. In the long run, central banks should beware of the existential threats posed by new risks related to stranded assets
Physical Description:1 Online-Ressource (19 Seiten)
DOI:10.1596/1813-9450-8881