LEADER 05075nam 2200661Ia 450 001 9910825602303321 005 20240814174517.0 010 $a1-4623-0936-4 010 $a1-4527-1173-9 010 $a1-4518-7169-4 010 $a1-282-84244-7 010 $a9786612842443 035 $a(CKB)3170000000055183 035 $a(EBL)1608141 035 $a(SSID)ssj0000942129 035 $a(PQKBManifestationID)11543355 035 $a(PQKBTitleCode)TC0000942129 035 $a(PQKBWorkID)10971846 035 $a(PQKB)10921618 035 $a(OCoLC)465418354 035 $a(IMF)WPIEE2009022 035 $a(MiAaPQ)EBC1608141 035 $a(EXLCZ)993170000000055183 100 $a20041202d2009 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aMonetary and fiscal rules in an emerging small open economy /$fprepared by Nicoletta Batini, Paul Levine, and Joseph Pearlman 205 $a1st ed. 210 $a[Washington D.C.] $cInternational Monetary Fund$d2009 215 $a1 online resource (80 p.) 225 1 $aIMF working paper ;$vWP/09/22 300 $aDescription based upon print version of record. 311 $a1-4519-1605-1 320 $aIncludes bibliographical references. 327 $aContents; I. Introduction; II. The Model; A. Households; B. Firms; C. The Government Budget Constraint and Foreign Asset Accumulation; D. The Equilibrium; E. Specialization of the Household's Utility Function; F. State Space Representation; G. The Small Open Economy; H. Calibration; III. Monetary Policy Interest Rate Rules; IV. Fiscal Rules; A. A Conventional Fiscal Rule; B. The Structural Fiscal Surplus Rule; V. Imposing the Nominal Interest Rate Zero Lower Bound; VI. Optimal Monetary and Fiscal Policy with Financial Frictions; A. Imposing the ZLB; Figures; 1. Imposition of ZLB: Model I 327 $a2. Imposition of ZLB: Model IIIB. Welfare Decomposition; C. Impulse Responses; 3. Impulse Responses to a-1 Percent Technology Shock. Models I, II, and III; VII. The Performance of Optimized Simple Rules; 4. Imposition of ZLB: Flex(D)+Conventional Fiscal Rule, Model I; 5. Imposition of ZLB: Flex(D)+Conventional Fiscal Rule: Model III; VIII. Conclusions; Tables; 1. Notation for Prices; 2. Welfare Outcomes Under Optimal Policy: No ZLB Constraint; 3. Optimal Policy with a ZLB Constraint: Monetary Policy Only for Model I 327 $a4. Optimal Commitment with a ZLB Constraint. Monetary Plus Fiscal Policy for Model I5. Welfare Outcomes Under Optimal Policy: ZLB Constraint; 6. Welfare Decomposition of Shocks; 7. Welfare Outcomes Under Optimized Simple Rules: FLEX (D) with a Conventional Fiscal Rule. Models I, II and III; 8. Welfare Outcomes Under Optimized Simple Rules: FIX with a Conventional Fiscal Rule. Models I, II and III; 9. Welfare Outcomes Under Optimized Simple Rules: FLEX(C) with a Conventional Fiscal Rule. Models I, II and III 327 $a10. Welfare Outcomes Under Optimized Simple Rules: FLEX(D) with a Modified SFSR. Models I, II and IIIAppendixes; 1. The Steady State; 2. Linearization; 3. Calibration and Estimation; 4. Quadratic Approximation of the Welfare Loss 330 3 $aWe develop a optimal rules-based interpretation of the 'three pillars macroeconomic policy framework': a combination of a freely floating exchange rate, an explicit target for inflation, and a mechanism than ensures a stable government debt-GDP ratio around a specified long run. We show how such monetary-fiscal rules need to be adjusted to accommodate specific features of emerging market economies. The model takes the form of two-blocs, a DSGE emerging small open economy interacting with the rest of the world and features, in particular, financial frictions It is calibrated using Chile and US data. Alongside the optimal Ramsey policy benchmark, we model the three pillars as simple monetary and fiscal rules including and both domestic and CPI inflation targeting interest rate rules alongside a 'Structural Surplus Fiscal Rule' as followed recently in Chile. A comparison with a fixed exchange rate regime is made. We find that domestic inflation targeting is superior to partially or implicitly (through a CPI inflation target) or fully attempting to stabilizing the exchange rate. Financial frictions require fiscal policy to play a bigger role and lead to an increase in the costs associated with simple rules as opposed to the fully optimal policy. 410 0$aIMF working paper ;$vWP/09/22. 606 $aMonetary policy$zDeveloping countries 606 $aFiscal policy$zDeveloping countries 615 0$aMonetary policy 615 0$aFiscal policy 676 $a332.4;332.41 700 $aBatini$b Nicoletta$01655456 701 $aLevine$b Paul$f1944-$01639229 701 $aPearlman$b Joseph$01655455 801 0$bMiAaPQ 801 1$bMiAaPQ 801 2$bMiAaPQ 906 $aBOOK 912 $a9910825602303321 996 $aMonetary and fiscal rules in an emerging small open economy$94207017 997 $aUNINA