Monetary Policy in Oil Exporting Countries with Fixed Exchange Rate and Open Capital Account: Expectations Matter
نویسندگان
چکیده
This paper shows that for UAE, an oil exporting country with pegged exchange rate and open capital account, adjusting nominal interest only to foreign could be economically inconsistent. By incorporating a market-expected mechanism in semi-structural New Keynesian Model, this highlights the role of prices expectations shocks transmission underlines relatively over-valuated UAE policy between 2010 2019. The assessment NIR over-valuation was not completely compensated, average monetary too accommodative than it had be.
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ژورنال
عنوان ژورنال: Journal of Business Cycle Measurement and Analysis
سال: 2022
ISSN: ['2509-7970', '2509-7962']
DOI: https://doi.org/10.1007/s41549-022-00073-x