Incorporating Financial Stability in Inflation Targeting Frameworks:
The global financial crisis has exposed the limitations of a conventional inflation targeting (IT) framework in insulating an economy from shocks, and demonstrated that its rigid application may aggravate the effect of shocks on output and inflation. Accordingly, we investigate possible refinements...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2011
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Schriftenreihe: | IMF Working Papers
Working Paper No. 11/224 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | The global financial crisis has exposed the limitations of a conventional inflation targeting (IT) framework in insulating an economy from shocks, and demonstrated that its rigid application may aggravate the effect of shocks on output and inflation. Accordingly, we investigate possible refinements to the IT framework by incorporating financial stability considerations. We propose a small open economy DSGE model, calibrated for Korea during the period of 2003 - 07, with real and financial frictions. The findings indicate that incorporating financial stability considerations can help smooth business cycle fluctuations more effectively than a conventional IT framework |
Beschreibung: | 1 Online-Ressource (45 p) |
ISBN: | 1463904320 9781463904326 |
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spelling | Aydin, Burcu Verfasser aut Incorporating Financial Stability in Inflation Targeting Frameworks Aydin, Burcu Washington, D.C International Monetary Fund 2011 1 Online-Ressource (45 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 11/224 The global financial crisis has exposed the limitations of a conventional inflation targeting (IT) framework in insulating an economy from shocks, and demonstrated that its rigid application may aggravate the effect of shocks on output and inflation. Accordingly, we investigate possible refinements to the IT framework by incorporating financial stability considerations. We propose a small open economy DSGE model, calibrated for Korea during the period of 2003 - 07, with real and financial frictions. The findings indicate that incorporating financial stability considerations can help smooth business cycle fluctuations more effectively than a conventional IT framework Online-Ausg Volkan, Engin Sonstige oth http://elibrary.imf.org/view/IMF001/12212-9781463904326/12212-9781463904326/12212-9781463904326.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Aydin, Burcu Incorporating Financial Stability in Inflation Targeting Frameworks |
title | Incorporating Financial Stability in Inflation Targeting Frameworks |
title_auth | Incorporating Financial Stability in Inflation Targeting Frameworks |
title_exact_search | Incorporating Financial Stability in Inflation Targeting Frameworks |
title_exact_search_txtP | Incorporating Financial Stability in Inflation Targeting Frameworks |
title_full | Incorporating Financial Stability in Inflation Targeting Frameworks Aydin, Burcu |
title_fullStr | Incorporating Financial Stability in Inflation Targeting Frameworks Aydin, Burcu |
title_full_unstemmed | Incorporating Financial Stability in Inflation Targeting Frameworks Aydin, Burcu |
title_short | Incorporating Financial Stability in Inflation Targeting Frameworks |
title_sort | incorporating financial stability in inflation targeting frameworks |
url | http://elibrary.imf.org/view/IMF001/12212-9781463904326/12212-9781463904326/12212-9781463904326.xml |
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