Limit search to available items
Record 27 of 72
Previous Record Next Record
Book Cover
E-book
Author Medina Guzman, Juan Pablo, 1971- author.

Title Commodity price shocks and imperfectly credible macroeconomic policies in commodity-exporting small open economies / prepared by Juan Pablo Medina and Claudio Soto
Published [Washington, D.C.] : International Monetary Fund, ©2014

Copies

Description 1 online resource (43 pages)
Series IMF working paper ; WP/14/33
IMF working paper ; WP/14/33.
Contents Cover; Contents; I. Introduction; II. The Model Economy; A. Households; B. Investment and capital goods; C. Domestic production; D. Import goods retailers; E. Commodity and Foreign sectors; F. Monetary and Fiscal Policies; III. Calibration And Simulations; A. Imperfect Credibility on the Monetary and Fiscal Rules; B. The role of monetary policy transparency; C. Credible and transparent monetary policy; D. Credible and transparent monetary policy and transparent fiscal policy; IV. Empirical Evidence; V. Conclusions; References; Tables; Table 1. Baseline Parameterization; Appendix
Appendix A: Simulation Under Imperfect CredibilityFigures; Figure 1. Market beliefs to a commodity price shock under perfect and imperfect credibility; Figure 2. Impulse-response to a commodity price shock under perfect and imperfect credibility; Figure 3. Market beliefs to a commodity price shock under perfect and imperfect credibility. The role of monetary policy transparency; Figure 4. Impulse-response to a commodity price shock under perfect and imperfect credibility. The role of monetary policy transparency
Figure 5. Market beliefs to a commodity price shock under perfect and imperfect credibility. The role of monetary policy transparency and reputationFigure 6. Impulse-response to a commodity price shock under perfect and imperfect credibility. The role of monetary policy transparency and reputation; Figure 7. Market beliefs to a commodity price shock under perfect and imperfect credibility. The role of monetary and fiscal policy transparency and monetary policy reputation
Figure 8. Impulse-response to a commodity price shock under perfect and imperfect credibility. The role of monetary and fiscal policy transparency and monetary policy reputationFigure 9. Volatility, Transparency and Credibility; Table 2. Relationship between GDP growth Volatility and Terms of trade Volatility (I); Table 3. Relationship between GDP growth Volatility and Terms of trade Volatility (II)
Summary "In this paper, we analyze how lack of credibility and transparency of monetary and fiscal policies undermines the effectiveness of macroeconomic policies to isolate the economy from commodity price fluctuations. We develop a general equilibrium model for a commodity-exporting economy where macro policies are conducted through rules. We show that the responses of output, aggregate demand, and inflation to an increase in commodity price are magnified when these rules are imperfectly credible and lack transparency. If policies are imperfectly credible, then transparency helps private agents to learn the systematic behavior of the authorities, reducing the effects of commodity prices shocks. Coherent with the model, we show cross-country evidence that monetary policy transparency and fiscal credibility reduce the incidence of export price volatility on output volatility. Also, our results indicate that having an explicit fiscal rule and an inflation targeting regime contribute to isolate the economy from terms of trade fluctuations"--Abstract
Notes At head of title: IMF Institute for Capacity Development
"February 2014."
Bibliography Includes bibliographical references
Notes Online resource; title from pdf title page (IMF.org Web site, viewed Apr 21, 2014)
Subject Prices -- Econometric models
Monetary policy -- Econometric models
Fiscal policy -- Econometric models
Transparency in government.
Fiscal policy -- Econometric models
Monetary policy -- Econometric models
Prices -- Econometric models
Transparency in government
Form Electronic book
Author Soto, Claudio, author
International Monetary Fund. Institute for Capacity Development, issuing body.
ISBN 1306513499
9781306513494
9781475561944
1475561946