World Food Prices, the Terms of Trade-Real Exchange Rate Nexus, and Monetary Policy PDF
By:Mr. Luis Catão,Roberto Chang
Published on 2013-05-17 by International Monetary Fund
How should monetary policy respond to large fluctuations in world food prices? We study this question in an open economy model in which imported food has a larger weight in domestic consumption than abroad and international risk sharing can be imperfect. A key novelty is that the real exchange rate and the terms of trade can move in opposite directions in response to world food price shocks. This exacerbates the policy trade-off between stabilizing output prices vis a vis the real exchange rate, to an extent that depends on risk sharing and the price elasticity of exports. Under perfect risk sharing, targeting the headline CPI welfare-dominates targeting the PPI if the variance of food price shocks is not too small and the export price elasticity is realistically high. In such a case, however, targeting forecast CPI is a superior choice. With incomplete risk sharing, PPI targeting is clearly a winner.
This Book was ranked at 23 by Google Books for keyword International Exports Imports novel.
Book ID of World Food Prices, the Terms of Trade-Real Exchange Rate Nexus, and Monetary Policy's Books is 8cJpUCFHaxAC, Book which was written byMr. Luis Catão,Roberto Changhave ETAG "w+15v0jNo1I"
Book which was published by International Monetary Fund since 2013-05-17 have ISBNs, ISBN 13 Code is 9781484394496 and ISBN 10 Code is 1484394496
Reading Mode in Text Status is false and Reading Mode in Image Status is true
Book which have "64 Pages" is Printed at BOOK under CategoryBusiness and Economics
Book was written in en
eBook Version Availability Status at PDF is true and in ePub is false
Book Preview
Download World Food Prices, the Terms of Trade-Real Exchange Rate Nexus, and Monetary Policy PDF Free
Download World Food Prices, the Terms of Trade-Real Exchange Rate Nexus, and Monetary Policy Books Free
Download World Food Prices, the Terms of Trade-Real Exchange Rate Nexus, and Monetary Policy Free
Download World Food Prices, the Terms of Trade-Real Exchange Rate Nexus, and Monetary Policy PDF
Download World Food Prices, the Terms of Trade-Real Exchange Rate Nexus, and Monetary Policy Books
No comments:
Post a Comment