scholarly journals REFLEXIONES Y PERSPECTIVAS A 25 AÑOS DE LA AUTONOMÍA DEL BANCO DE MÉXICO

2019 ◽  
Vol 78 (310) ◽  
pp. 11 ◽  
Author(s):  
Jonathan Heath ◽  
Jaime Acosta Margain
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Foreign Exchange ◽  
International Reserve ◽  
Policy Framework ◽  
Price Stability ◽  
Reserve Management ◽  
Exchange Policy ◽  
Communication Policies ◽  
Monetary Policy Framework

<p>En este artículo se hace una serie de reflexiones sobre los retos y logros que el Banco de México ha enfrentado en sus primeros 25 años de vida autónoma. Se detallan los elementos claves en el diseño institucional para el cumplimiento de su mandato prioritario: la estabilidad del poder adquisitivo de la moneda. En particular, se destaca la evolución de los cambios en el régimen monetario y en la instrumentación de la política monetaria para alcanzar ese fin. De igual manera, se comentan otros aspectos que han sido relevantes en este periodo de la vida autónoma del banco central, tales como la política cambiaria, el manejo de las reservas internacionales, así como la política de rendición de cuentas y la estrategia de comunicación.<br /><br /></p><p>REFLECTIONS AND PERSPECTIVES AT 25 YEARS OF THE AUTONOMY OF THE BANCO DE MÉXICO</p><p><br /><strong>ABSTRACT</strong><br />This paper describes the challenges and achievements that Banco de México has faced during its first twenty-five years of autonomy. The paper offers some insights about key institutional features that were decisive in fulfilling the central bank’s main mandate: Price stability. The article also outlines the evolution of the monetary policy framework and the central bank operations in order to achieve the central bank main goal. Similarly, other elements such as foreign exchange policy, international reserve management, accountability and communication policies are also discussed.</p>

scholarly journals Have Financial Stability Concerns Changed the Priority of the Central Bank of the Republic of Turkey?

2017 ◽  
Vol 12 (2) ◽  
pp. 35-45 ◽  
Author(s):  
Ekrem Erdem ◽  
Umit Bulut ◽  
Emrah Kocak
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Stability ◽  
Nominal Exchange Rate ◽  
Policy Framework ◽  
Price Stability ◽  
Cointegration Tests ◽  
The Republic ◽  
Republic Of Turkey ◽  
Monetary Policy Framework

Abstract This paper aims at analysing whether the Central Bank of the Republic of Turkey (CBRT), designing a new monetary policy framework to achieve financial stability in the last quarter of 2010, tries to pursue financial stability by putting price stability on the back burner. To this end, a forward-looking reaction function that is extended with nominal exchange rate gap and nominal domestic credits gap is estimated for the CBRT. The paper first performs unit root and cointegration tests and finds that the variables become stationary at first differences and that there is a cointegration relationship among variables. Then, the paper conducts the Kalman filter to obtain time varying parameters. The findings show that the coefficients of all explanatory variables did not change too much after the new monetary policy framework of the CBRT in the last quarter of 2010. Therefore, this paper asserts that the CBRT continues to pursue price stability as its primary goal and tries to achieve financial stability by using macroprudential tools. Thus this paper concludes that financial stability concerns have not changed the priority of the CBRT.

On the Role of Money Targets in the Monetary Policy Framework in SSA

2018 ◽  
Author(s):  
Andrew Berg ◽  
Rafael Portillo ◽  
Filiz Unsal
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Central Bank ◽  
Low Income ◽  
New Keynesian ◽  
Policy Framework ◽  
Low Income Countries ◽  
Money Growth ◽  
Ex Post ◽  
Monetary Policy Framework

Many low-income countries continue to describe their monetary policy framework in terms of targets on monetary aggregates. This chapter extends the New Keynesian model to provide a role for ‘M’ in the conduct of monetary policy, and examine the conditions under which some adherence to money targets is optimal. In the spirit of Poole (1970), this role is based on the incompleteness of information available to the central bank, a pervasive issue in these countries. Ex ante announcements and forecasts for money growth are consistent with a Taylor rule for the relevant short-term interest rate. Ex post, the policymaker must choose his relative adherence to interest rate and money growth targets. The chapter shows that some adherence to previously set money targets can emerge endogenously from the signal extraction problem faced by the central bank. The chapter also provides an analytical representation of the factors influencing the degree of optimal target adherence.

scholarly journals Alternative Core Inflation Measures in Nigeria: An Examination

2020 ◽  
Vol 7 (4) ◽  
pp. 112
Author(s):  
Ladi R. Bala-Keffi ◽  
Donald G. Mbaka ◽  
Nuruddeen Usman
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Inflation Targeting ◽  
Central Banks ◽  
Policy Framework ◽  
Communication Tool ◽  
Core Inflation ◽  
Aid Policy ◽  
Central Bankers ◽  
Monetary Policy Framework

Core inflation measures have played an important role in the conduct of monetary policy at various central banks around the world. We examine core inflation in Nigeria using non-traditional measures and assess their persistence, to determine whether the Central Bank of Nigeria (CBN) should pay attention to one or other of these measures when assessing inflation developments. We find that the two new measures outperform the official core rate in tracking the persistence of headline inflation. The findings of this study will aid policy making within the Central bank of Nigeria (CBN) particularly where inflation targeting is adopted as the monetary policy framework. These core inflation measures provide a useful guide to central bankers both for monetary policy decisions and as a communication tool. They are a better predictor of future inflation depicting the more persistent influences on underlying inflation, which are of interest to policymakers (e.g. Clark, 2001; Blinder and Reis, 2005; Smith, 2004 and Dolmas &Wynne, 2008).

scholarly journals Towards Full-Fledged Inflation Targeting Monetary Policy Regime in Mauritius

2021 ◽  
Vol 14 (3) ◽  
pp. 126
Author(s):  
Ashwin Madhou ◽  
Tayushma Sewak ◽  
Imad Moosa ◽  
Vikash Ramiah ◽  
Florian Gerth
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Structural Features ◽  
Policy Framework ◽  
Price Stability ◽  
Policy Regime ◽  
Practical Model ◽  
Analysis System ◽  
Emerging And Developing Countries ◽  
Monetary Policy Framework

An increasing number of emerging and developing countries have adopted or are transitioning towards full-fledged inflation targeting (FFIT) as the main monetary policy framework to anchor inflation. In this paper, we explore the FFIT regime as a means for Mauritius to achieve stable inflation, anchor inflationary expectations and establish credibility in committing monetary policy towards price stability as its primary goal. This paper reviews and highlights issues experienced with the current monetary policy framework and the challenges in transitioning towards FFIT. Given that forecasting is central to FFIT, we develop a practical model-based forecasting and policy analysis system (FPAS) to support transition to FFIT, taking into account structural features and shocks that are specific to the Mauritius economy.

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