Monetary Policy Rules and Foreign Currency Positions

origins of armenia’s foreign policy and its foreign policy towards iran

foreign policy takes root from complicated matters. however, this issue may be more truth about armenia. although the new government of armenia is less than 20 years, people of this territory are the first ones who officially accepted christianity. in very past times, these people were a part of great emperors like iran, rome, and byzantium.armenia is regarded as a nation with a privileged hist...

From Hard Currency Policy to Monetary Union

In the wake of monetary integration in Europe, Austria abandoned the tested hard currency policy (HCP) for joining EMU as a member. The final target of monetary policy and real sector adjustment needs are similar in both regimes, and the HCP may therefore be viewed as a convenient "training camp" for later EMU accession. Georg Winckler devoted a number of essays on the critique, but also on the...

U.S Monetary Policy and Foreign Bond Yields

This paper compares the effects of conventional U.S. monetary policy on foreign government bonds yields with those of the unconventional measures employed after the target federal funds rate hit the zero lower bound in late 2008. We measure the U.S. monetary policy surprises using narrow-window changes in the 2-year Treasury yield bracketing FOMC announcements. The results indicate that an expa...

Currency Misalignments and Optimal Monetary Policy: A Reexamination

This paper examines optimal monetary policy in an open-economy two-country model with sticky prices. We find that optimal policy must target not only inflation and the output gap, but also the currency misalignment. However the interest rate reaction function that supports this targeting rule involves only the CPI inflation rate. This result highlights how examination of interest-rate reaction ...

Monetary Policy, Currency Unions and Open Economy Macrodynamics