This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Fear of Floating and Social Welfare Author info | Abstract | Publisher info | Download info | Related research | Statistics Tambakis, D.N.
Additional information is available for the following
registered author(s):
This paper studies the welfare implications of financial stability and inflation stabilization as distinct monetary policy objectives. Introducing asymmetric aversion to exchange rate depreciation in the Barro-Gordon model mitigates inflation bias due to credibility problems. The net welfare impact of fear of floating depends on the economy’s recent track record, the credibility of monetary policy, and the central bank’s discount factor. It is shown that fear of floating is more appropriate for financially fragile developing countries with imperfectly credible monetary policy than for advanced economies.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
file . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number
0726.
Download reference. The following formats are available: HTML ,
plain text ,
BibTeX ,
RIS (EndNote),
ReDIF
Length: 29
Date of creation: May 2007Date of revision:
Handle: RePEc:cam:camdae:0726Note: EcContact details of provider: Web page: http://www.econ.cam.ac.uk/index.htm
For technical questions regarding this item, or to correct its listing, contact: (Howard Cobb).
Keywords: Fear of floating financial stability policy credibility emerging market economies. Other versions of this item:
Find related papers by JEL classification: E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Francisco Javier Ruge-Murcia, 2001.
"Inflation Targeting Under Asymmetric Preferences ,"
IMF Working Papers
01/161, International Monetary Fund.
[Downloadable!]
Other versions:
RUGE-MURCIA, Francisco .J., 2001.
"Inflation Targeting Under Asymmetric Preferences ,"
Cahiers de recherche
2001-04, Universite de Montreal, Departement de sciences economiques.
[Downloadable!] Francisco J. Ruge-Murcia, 2001.
"Inflation Targeting Under Asymmetric Preferences ,"
Banco de España Working Papers
0106, Banco de España.
[Downloadable!] Ruge-Murcia, F.J., 2001.
"Inflation Targeting Under Asymmetric Preferences ,"
Cahiers de recherche
2001-04, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
Ruge-Murcia, Francisco J, 2003.
" Inflation Targeting under Asymmetric Preferences ,"
Journal of Money, Credit and Banking ,
Blackwell Publishing, vol. 35(5), pages 763-85, October.
Carmen M. Reinhart, 2000.
"Mirage of Floating Exchange Rates ,"
American Economic Review ,
American Economic Association, vol. 90(2), pages 65-70, May.
[Downloadable!] (restricted)
Masson, Paul R., 2001.
"Exchange rate regime transitions ,"
Journal of Development Economics ,
Elsevier, vol. 64(2), pages 571-586, April.
[Downloadable!] (restricted)
Other versions: von Hagen, Jürgen & Zhou, Jizhong, 2006.
"The Interaction Between Capital Controls and Exchange Rate Regimes: Evidence from Developing Countries ,"
CEPR Discussion Papers
5537, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Obstfeld, Maurice, 1996.
"Models of Currency Crises with Self-fulfilling Features ,"
CEPR Discussion Papers
1315, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Other versions:
Maurice Obstfeld, 1997.
"Models of Currency Crises with Self-Fulfilling Features ,"
NBER Working Papers
5285, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Obstfeld, Maurice, 1996.
"Models of currency crises with self-fulfilling features ,"
European Economic Review ,
Elsevier, vol. 40(3-5), pages 1037-1047, April.
[Downloadable!] (restricted) Drazen, Allan & Masson, Paul R, 1994.
"Credibility of Policies versus Credibility of Policymakers ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 109(3), pages 735-54, August.
[Downloadable!] (restricted)
Other versions: RUGE-MURCIA, Francisco J., 2002.
"Does the Barro-Gordon Model Explain the Behavior of US Inflation? a Reexamination of the Empirical Evidence ,"
Cahiers de recherche
2002-07, Universite de Montreal, Departement de sciences economiques.
[Downloadable!]
Other versions:
Ruge-Murcia, F.J., 2002.
"Does the Barro-Gordon Model Explain the Behavior of US Inflation? A Reexamination of the Empirical Evidence ,"
Cahiers de recherche
07-2002, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
[Downloadable!] Ruge-Murcia, Francisco J., 2003.
"Does the Barro-Gordon model explain the behavior of US inflation? A reexamination of the empirical evidence ,"
Journal of Monetary Economics ,
Elsevier, vol. 50(6), pages 1375-1390, September.
[Downloadable!] (restricted) Barro, Robert J & Gordon, David B, 1983.
"A Positive Theory of Monetary Policy in a Natural Rate Model ,"
Journal of Political Economy ,
University of Chicago Press, vol. 91(4), pages 589-610, August.
[Downloadable!] (restricted)
Other versions: Guillermo A. Calvo & Carmen M. Reinhart, 2002.
"Fear Of Floating ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 117(2), pages 379-408, May.
[Downloadable!] (restricted)
Other versions: Chang, Roberto & Velasco, Andres, 2001.
"Monetary policy in a dollarized economy where balance sheets matter ,"
Journal of Development Economics ,
Elsevier, vol. 66(2), pages 445-464, December.
[Downloadable!] (restricted)
Walsh, Carl E, 1995.
"Optimal Contracts for Central Bankers ,"
American Economic Review ,
American Economic Association, vol. 85(1), pages 150-67, March.
[Downloadable!] (restricted)
Corrinne Ho & Robert N. McCauley, 2003.
"Living with flexible exchange rates: issues and recent experience in inflation targeting emerging market economies ,"
BIS Working Papers
130, Bank for International Settlements.
[Downloadable!]
Chang, Roberto & Velasco, Andres, 2000.
"Banks, debt maturity and financial crises ,"
Journal of International Economics ,
Elsevier, vol. 51(1), pages 169-194, June.
[Downloadable!] (restricted)
Eduardo J.J. Ganapolsky, 2003.
"Optimal fear of floating: the role of currency mismatches and fiscal constraints ,"
Working Paper
2003-31, Federal Reserve Bank of Atlanta.
[Downloadable!]
Maurice Obstfeld, 1994.
"The Logic of Currency Crises ,"
NBER Working Papers
4640, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Amartya Lahiri & Carlos A. Vegh, 2001.
"Living with the Fear of Floating: An Optimal Policy Perspective ,"
NBER Working Papers
8391, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Svensson, Lars E. O. & Woodford, Michael, 2003.
"Indicator variables for optimal policy ,"
Journal of Monetary Economics ,
Elsevier, vol. 50(3), pages 691-720, April.
[Downloadable!] (restricted)
Other versions:
Svensson, Lars & Woodford, Michael, 2000.
"Indicator Variables for Optimal Policy ,"
Seminar Papers
688, Stockholm University, Institute for International Economic Studies.
[Downloadable!] Lars E.O. Svensson & Michael Woodford, 2000.
"Indicator Variables for Optimal Policy ,"
NBER Working Papers
7953, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted) Lars E.O. Svensson & Michael Wooford, 2000.
"Indicator variables for optimal policy ,"
Working Paper Series
12, European Central Bank.
[Downloadable!] Lars E.O. Svensson & Michael Woodford, 2000.
"Indicator variables for optimal policy ,"
Proceedings ,
Federal Reserve Bank of San Francisco.
[Downloadable!] Aghion, Philippe & Bacchetta, Philippe & Banerjee, Abhijit, 2004.
"A corporate balance-sheet approach to currency crises ,"
Journal of Economic Theory ,
Elsevier, vol. 119(1), pages 6-30, November.
[Downloadable!] (restricted)
Other versions:
Aghion, Philippe & Bacchetta, Philippe & Banerjee, Abhijit, 2001.
"A Corporate Balance Sheet Approach to Currency Crises ,"
CEPR Discussion Papers
3092, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Philippe Aghion & Philippe Bacchetta & Abhijit Banerjee, 2001.
"A Corporate Balance-Sheet Approach to Currency Crises ,"
Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP)
01.14, Université de Lausanne, Faculté des HEC, DEEP.
[Downloadable!] Philippe Aghion & Philippe Bacchetta & Abhijit Banerjee, 2001.
"A corporate Balance-Sheet Approach to Currency Crises ,"
Working Papers
01.05, Swiss National Bank, Study Center Gerzensee.
[Downloadable!] A. Robert Nobay & David A. Peel, 2003.
"Optimal Discretionary Monetary Policy in a Model of Asymmetric Central Bank Preferences ,"
Economic Journal ,
Royal Economic Society, vol. 113(489), pages 657-665, 07.
[Downloadable!] (restricted)
Barry Eichengreen & Raul Razo-Garcia, 2006.
"The international monetary system in the last and next 20 years ,"
Economic Policy ,
CEPR, CES, MSH, vol. 21(47), pages 393-442, 07.
[Downloadable!] (restricted)
Alan S. Blinder, 2000.
"Central-Bank Credibility: Why Do We Care? How Do We Build It? ,"
American Economic Review ,
American Economic Association, vol. 90(5), pages 1421-1431, December.
[Downloadable!] (restricted)
Other versions: Claudio E. V. Borio & Wiliam English & Andrew Filardo, 2003.
"A tale of two perspectives: old or new challenges for monetary policy? ,"
BIS Working Papers
127, Bank for International Settlements.
[Downloadable!]
Lars E.O Svensson, 2002.
"Monetary policy and real stabilization ,"
Proceedings ,
Federal Reserve Bank of Kansas City, pages 261-312.
[Downloadable!]
Other versions: Guillermo A. Calvo & Carmen M. Reinhart, 2000.
"Fixing for Your Life ,"
NBER Working Papers
8006, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Ronald McKinnon & Gunther Schnabl, 2003.
"The East Asian Dollar Standard, Fear of Floating, and Original Sin ,"
Working Papers
03001, Stanford University, Department of Economics.
[Downloadable!]
Other versions:
Ronald McKinnon & Gunther Schnabl, 2003.
"The East Asian Dollar Standard, Fear of Floating, and Original Sin ,"
Working Papers
112003, Hong Kong Institute for Monetary Research.
[Downloadable!] Ronald McKinnon & Gunther Schnabl, 2004.
"The East Asian Dollar Standard, Fear of Floating, and Original Sin ,"
Review of Development Economics ,
Blackwell Publishing, vol. 8(3), pages 331-360, 08.
[Downloadable!] (restricted) Kydland, Finn E & Prescott, Edward C, 1977.
"Rules Rather Than Discretion: The Inconsistency of Optimal Plans ,"
Journal of Political Economy ,
University of Chicago Press, vol. 85(3), pages 473-91, June.
[Downloadable!] (restricted)
corrinne ho & robert n mccauley, 2004.
"Living with flexible exchange rates: ,"
International Finance
0411003, EconWPA.
[Downloadable!]
MCKINNON, Ronald I., 2004.
"The East Asian dollar standard ,"
China Economic Review ,
Elsevier, vol. 15(3), pages 325-330.
[Downloadable!] (restricted)
Jeanne, Olivier & Masson, Paul, 2000.
"Currency crises, sunspots and Markov-switching regimes ,"
Journal of International Economics ,
Elsevier, vol. 50(2), pages 327-350, April.
[Downloadable!] (restricted)
Other versions: Graciela L. Kaminsky & Carmen M. Reinhart, 1999.
"The Twin Crises: The Causes of Banking and Balance-of-Payments Problems ,"
American Economic Review ,
American Economic Association, vol. 89(3), pages 473-500, June.
[Downloadable!] (restricted)
Other versions: Levy-Yeyati, Eduardo & Sturzenegger, Federico, 2005.
"Classifying exchange rate regimes: Deeds vs. words ,"
European Economic Review ,
Elsevier, vol. 49(6), pages 1603-1635, August.
[Downloadable!] (restricted)
Paul Masson & Francisco J. Ruge-Murcia, 2005.
"Explaining the Transition between Exchange Rate Regimes ,"
Scandinavian Journal of Economics ,
Blackwell Publishing, vol. 107(2), pages 261-278, 06.
[Downloadable!] (restricted)
Other versions:
MASSON, Paul & RUGE-MURCIA, Francisco J., 2003.
"Explaining the Transition Between Exchange Rate Regimes ,"
Cahiers de recherche
2003-21, Universite de Montreal, Departement de sciences economiques.
[Downloadable!] MASSON, Paul & RUGE-MURCIA, Francisco J., 2003.
"Explaining the Transition Between Exchange Rate Regimes ,"
Cahiers de recherche
15-2003, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
[Downloadable!]
Full
references
Access and
download statistics Did you know? IDEAS is also providing many rankings , for example of authors and institutions.
This page was last updated on 2008-9-1.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .