Accumulating Foreign Reserves Under Floating Exchange Rates / / Fernando M. Gonçalves

• Autore: Gonçalves Fernando M
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2008
• Descrizione fisica: 1 online resource (43 p.)
• Disciplina: 332.456
• Soggetto topico: Foreign exchange rates - Econometric models; Bank reserves - Econometric models; Monetary policy - Econometric models; Banks and Banking; Foreign Exchange; Inflation; Money and Monetary Policy; Public Finance; Monetary Policy; Price Level; Deflation; Taxation, Subsidies, and Revenue: General; Monetary economics; Macroeconomics; Banking; Currency; Foreign exchange; Public finance & taxation; Inflation targeting; Reserves accumulation; Foreign exchange intervention; Institutional arrangements for revenue administration; Monetary policy; Prices; Foreign exchange reserves; Revenue
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Contents; 1. Introduction; 2. Theoretical Model: Basic Set-up; 3. Complete Information; 3.1. Centralization; 3.2. Institutional Arrangements in Practice; 3.3. Separation; 3.4. Centralization versus Separation; 4. Incomplete Information; 4.1. Stage 1: Centralization versus Separation; Figures; 1. Timetable; 4.2. Stage 0: Centralization versus Separation; 5. Comparative Analysis Under Incomplete Information; 5.1. Simulation of Stage 0 Parameters; 2. Simulation of Stage 0 Parameters; 5.2. The Trade-off Between Reserve Accumulation and Credibility Building; 5.3. Centralization versus Separation ; 5.3.1. Macroeconomic Stability3. Macroeconomic Stability - Centralization versus Separation; 5.3.2. Reserve Targeting; 4. Reserve Targeting - Centralization versus Separation; 5.3.3. Discussion; 6. Concluding Remarks; References; Appendix; Proof of Proposition 1; Proof of Corollary 1
• Sommario/riassunto: Official accumulation of foreign reserves may be perceived as interventions to influence the exchange rate, undermining the credibility of floating exchange rates and inflation targets. This paper develops a theoretical framework to study the interaction between reserve accumulation and monetary policy. The model uncovers a trade-off between the speed of reserve accumulation and anti-inflationary credibility. Under reasonable assumptions, delegation of intervention and monetary policy decisions to separate government agencies allows faster reserve accumulation, while centralization of these decisions results in a more stable economy. The analysis underscores the importance of rather overlooked institutional features of policymaking in open economies.
• Titolo autorizzato: Accumulating Foreign Reserves Under Floating Exchange Rates
• ISBN: 1-4623-6690-2; 1-4527-0267-5; 1-4518-6957-6; 1-282-84051-7; 9786612840517
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910788246003321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2008/096