04494oam 22009854 450 991078840610332120230721033256.01-4623-9115-X1-4527-5517-51-283-51562-81-4519-1023-19786613828071(CKB)3360000000443735(EBL)1608470(SSID)ssj0000943341(PQKBManifestationID)11479835(PQKBTitleCode)TC0000943341(PQKBWorkID)10982419(PQKB)11448277(OCoLC)568151235(MiAaPQ)EBC1608470(IMF)WPIEE2007006(EXLCZ)99336000000044373520020129d2007 uf 0engurcn|||||||||txtccrCan a Rule-Based Monetary Policy Framework Work in a Developing Country? The Case of YemenWashington, D.C. :International Monetary Fund,2007.1 online resource (30 p.)IMF Working Papers"January 2007."At head of title: Middle East and Central Asia Department.1-4518-6570-8 Includes bibliographical references (p. 27-28).Contents; I. Introduction; II. Key Considerations in Designing a Monetary Policy Framework for Yemen; A. Instability of Money Demand; B. Maintaining a Flexible Exchange Rate Regime; C. Exchange Rate Pass-through to Inflation; Figures; 1. Overall and Core Inflation, January 2000-July 2006; III. An Alternative Monetary Policy Framework; A. General Considerations; B. Instruments and Operating Targets; C. Monetary Policy Rule; IV. Forward-Looking Approach and the Need to Forecast Inflation; A. Forecasting Techniques; V. Concluding Remarks; Appendixes; I. Instability of Money Demand in YemenII. Evidence of Exchange Rate-Inflation Pass-Through in YemenIII. Inflation Forecasting Techniques for Yemen; BibliographyMonetary policy in Yemen is largely rudimentary and ad hoc in nature. The Central Bank of Yemen's (CBY) approach has been based on discretionary targeting of broad money without any clear target to anchor inflation expectations. This paper argues in favor of a new formal monetary policy framework for Yemen emphasizing a proactive and rule-based approach with a greater direct focus on price stability in the context of a flexible management of the exchange rate. Although, as in many developing countries, institutional capacity is a concern, adopting a more formal framework could impel the kind of changes that are required to strengthen the ability of the CBY in achieving low and stable rates of inflation over the medium term.IMF Working Papers; Working Paper ;No. 2007/006Monetary policyYemen (Republic)Anti-inflationary policiesYemen (Republic)Foreign ExchangeimfInflationimfMoney and Monetary PolicyimfPrice LevelimfDeflationimfMonetary PolicyimfMacroeconomicsimfCurrencyimfForeign exchangeimfMonetary economicsimfMonetary policy frameworksimfExchange ratesimfExchange rate flexibilityimfExchange rate pass-throughimfPricesimfMonetary policyimfYemen, Republic ofimfMonetary policyAnti-inflationary policiesForeign ExchangeInflationMoney and Monetary PolicyPrice LevelDeflationMonetary PolicyMacroeconomicsCurrencyForeign exchangeMonetary economicsMonetary policy frameworksExchange ratesExchange rate flexibilityExchange rate pass-throughPricesMonetary policy332International Monetary Fund.Middle East and Central Asia Dept.DcWaIMFBOOK9910788406103321Can a Rule-Based Monetary Policy Framework Work in a Developing Country? The Case of Yemen3850032UNINA