The Resource Optimal exchange rate policy in a growing semi-open economy, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)

Optimal exchange rate policy in a growing semi-open economy, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)

Label
Optimal exchange rate policy in a growing semi-open economy
Title
Optimal exchange rate policy in a growing semi-open economy
Statement of responsibility
Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis
Creator
Contributor
Author
Subject
Language
eng
Summary
In this paper, we consider an alternative perspective to China's exchange rate policy. We study a semi-open economy where the private sector has no access to international capital markets but the central bank has full access. Moreover, we assume limited financial development generating a large demand for saving instruments by the private sector. We analyze the optimal exchange rate policy by modelling the central bank as a Ramsey planner. Our main result is that in a growth acceleration episode it is optimal to have an initial real depreciation of the currency combined with an accumulation of reserves, which is consistent with the Chinese experience. This depreciation is followed by an appreciation in the long run. We also show that the optimal exchange rate path is close to the one that would result in an economy with full capital mobility and no central bank intervention
Member of
Cataloging source
GZM
http://library.link/vocab/creatorName
Bacchetta, Philippe
Illustrations
illustrations
Index
no index present
Literary form
non fiction
Nature of contents
  • dictionaries
  • bibliography
http://library.link/vocab/relatedWorkOrContributorName
  • Benhima, Kenza
  • Kalantzis, Yannick
  • Centre for Economic Policy Research (Great Britain)
Series statement
  • Discussion paper series,
  • International macroeconomics
Series volume
no. 9666
http://library.link/vocab/subjectName
  • Foreign exchange rates
  • Monetary policy
Label
Optimal exchange rate policy in a growing semi-open economy, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)
Link
http://www.cepr.org.ezproxy.eui.eu/content/discussion-papers
Instantiates
Publication
Note
  • "September 2013."
  • "Submitted 18 September 2013."
Bibliography note
Includes bibliographical references (pages 36-38)
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier.
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Control code
FIEb17470754
Extent
1 online resource (47 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia.
Media type code
c
Other physical details
illustrations.
Specific material designation
remote
System control number
(OCoLC)859335289
Label
Optimal exchange rate policy in a growing semi-open economy, Philippe Bacchetta, Kenza Benhima and Yannick Kalantzis, (electronic resource)
Link
http://www.cepr.org.ezproxy.eui.eu/content/discussion-papers
Publication
Note
  • "September 2013."
  • "Submitted 18 September 2013."
Bibliography note
Includes bibliographical references (pages 36-38)
Carrier category
online resource
Carrier category code
cr
Carrier MARC source
rdacarrier.
Content category
text
Content type code
txt
Content type MARC source
rdacontent.
Control code
FIEb17470754
Extent
1 online resource (47 pages)
Form of item
online
Media category
computer
Media MARC source
rdamedia.
Media type code
c
Other physical details
illustrations.
Specific material designation
remote
System control number
(OCoLC)859335289

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