Monetary policy rules in emerging market economies: issues and evidence

@inproceedings{Filardo2004MonetaryPR,
  title={Monetary policy rules in emerging market economies: issues and evidence},
  author={Andrew J Filardo},
  year={2004}
}
  • Andrew J Filardo
  • Published 2004
The paper reviews the recent conduct of monetary policy and central banks’ interest rate setting behaviour in emerging market economies. Using a standard open economy reaction function, we test whether central banks in emerging economies react to changes in inflation, output gaps and the exchange rate in a consistent and predictable manner. In most emerging economies the interest rate responds strongly to the exchange rate; in some, the response is higher than that to changes in the inflation… CONTINUE READING
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