The Role of Exchange Rate in Monetary Policy Rules: A Welfare-Based Re-Examination

2021 ◽  
Author(s):  
Jiao Shi
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Policy Rules ◽  
Monetary Policy Rules

scholarly journals MONETARY POLICY RULES IN MALAYSIA, SINGAPORE AND THAILAND

2020 ◽  
Vol 23 (4) ◽  
pp. 565-596
Author(s):  
Chai-Thing Tan ◽  
Azali Mohamed
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Government Spending ◽  
Taylor Rule ◽  
Central Banks ◽  
Monetary Policies ◽  
Policy Rules ◽  
Monetary Policy Rules ◽  
The Exchange Rate ◽  
Monetary Policy Reaction Function

This paper investigates whether monetary policies in Malaysia, Thailand and Singapore are best represented by either the Taylor rule or the augmented Taylor rule. It finds that the augmented Taylor rule, which incorporates the exchange rate and government spending, best represents monetary policies in these countries. The results show that past inflation and the output gap play a role in the monetary policy reaction function in Malaysia and Thailand. The results further show a strong preference towards interest rate smoothing, government spending, and the exchange rate by the central banks.

Monetary policy rules and the exchange rate channel

2005 ◽  
Vol 15 (16) ◽  
pp. 1165-1170 ◽  
Author(s):  
Kai Leitemo ◽  
Øistein Røisland ◽  
Ragnar Torvik
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Policy Rules ◽  
Monetary Policy Rules ◽  
The Exchange Rate

scholarly journals RULES ON MONETARY POLICY AND INTERNATIONAL IMPERFECT SUBSTITUTIONS OF ASSETS

2018 ◽  
Vol 19 (1) ◽  
Author(s):  
Taufiq Carnegie Dawood
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Policy Making ◽  
Macroeconomic Variable ◽  
Policy Rules ◽  
Monetary Policy Rules ◽  
Macroeconomic Variables ◽  
Currency Mismatch ◽  
The Stability ◽  
The Impact

This paper revisits and extend discussions which evaluate the impact of different rules on monetary policy. Rules on one which excludes or includes stability of the exchange rate as an objective of monetary policy making, with currency mismatch existence as given, on the fluctuations of major economic variables. In this paper I develop a financial accelerator model with financial intermediary consistent with currency mismatch, and assume imperfect international substitutability of assets. This paper found that the variation of rule of monetary policy considered in the analysis produces variations in the fluctuations of the macroeconomic variable. However the impact of the different monetary policy rules on the stability of the macroeconomic variables is shock dependent.

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