Explaining exchange rate anomalies in a model with Taylor-rule fundamentals and consistent expectations
نویسندگان
چکیده
منابع مشابه
Sources of exchange rate fluctuations with Taylor rule fundamentals
a r t i c l e i n f o This paper investigates the sources of exchange rate fluctuations when monetary policy follows a Taylor rule interest rate reaction function. We first present a simple dynamic exchange rate model with Taylor rule fundamentals which is triangular in the long-run impacts of shocks to the output market, the interest rate differential, and the Taylor rule. We then proceed to a...
متن کاملReal-time expectations in the Taylor rule
This paper presents a refined interpretation of the role of real time data in estimating a Taylor rule. We use monthly Consensus survey data to construct inflationary and growth expectations. We argue that using real time expectations in estimating a Taylor rule is to be preferred above using real time output gap data alone. We approach uncertainty by the variance and skewness of expected outpu...
متن کاملan appropriate model for exchange rate predictability in iran: comparing potential forecastability
nowadays in trade and economic issues, prediction is proposed as the most important branch of science. existence of effective variables, caused various sectors of the economic and business executives to prefer having mechanisms which can be used in their decisions. in recent years, several advances have led to various challenges in the science of forecasting. economical managers in various fi...
Policy Targeting with Model-Consistent Expectations
Studies of inflation targeting make the distinction between strict and flexible inflation targeting. The problem of strict inflation targeting has so far been analysed by treating it as a special case of a standard optimal control problem and the algorithms used have not provided an exact solution. This paper presents a formal solution to the problem of strict inflation targeting in a economy w...
متن کاملa study on rate making and required reserves determination in reinsurance market: a simulation
reinsurance is widely recognized as an important instrument in the capital management of an insurance company as well as its risk management tool. this thesis is intended to determine premium rates for different types of reinsurance policies. also, given the fact that the reinsurance coverage of every company depends upon its reserves, so different types of reserves and the method of their calc...
ذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of International Money and Finance
سال: 2017
ISSN: 0261-5606
DOI: 10.1016/j.jimonfin.2016.08.004