A Welfare‐Based Analysis of International Monetary Policy Spillovers at the Zero Lower Bound
| Autor: | Alex Haberis, Anna Lipińska |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
050208 finance media_common.quotation_subject 05 social sciences Small open economy Zero lower bound Monetary policy Financial integration Monetary economics Forward guidance Exchange rate Accounting 0502 economics and business Financial crisis Economics 050207 economics Welfare Finance media_common |
| Zdroj: | Journal of Money, Credit and Banking. 52:1107-1145 |
| ISSN: | 1538-4616 0022-2879 |
| DOI: | 10.1111/jmcb.12655 |
| Popis: | We study the welfare effects of international monetary policy spillovers at the zero lower bound, focusing on the effects of forward guidance in a large economy (“foreign”) on its smaller trading partner (“home”) in scenarios motivated by the global financial crisis. We find that foreign forward guidance has an overall prosper‐thy‐neighbor effect on the home economy as long as it increases foreign welfare. This finding holds under alternative assumptions about exchange rate pass‐through or the degree of international financial integration. However, foreign forward guidance may worsen the trade‐off between the stabilization objectives of home monetary policy. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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