2006 | OriginalPaper | Buchkapitel
Inflation Targeting in Dollarized Economies
verfasst von : Leonardo Leiderman, Rodolfo Maino, Eric Parrado
Erschienen in: Financial Dollarization
Verlag: Palgrave Macmillan UK
Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.
Wählen Sie Textabschnitte aus um mit Künstlicher Intelligenz passenden Patente zu finden. powered by
Markieren Sie Textabschnitte, um KI-gestützt weitere passende Inhalte zu finden. powered by
An increasing number of emerging market economies have been adopting IT as their monetary policy regime. There is reason to believe that this shift has contributed to the relatively low inflation observed in these economies.2 This outcome has surprised those who maintained that these economies are far away from the preconditions required for implementing IT. In particular, the existence of managed exchange rate regimes under foreign exchange market intervention, of a narrow base of domestic nominal financial assets and the lack of market instruments to hedge exchange rate risks, together with fear of floating, have been stressed as factors that drastically weaken the efficacy of monetary policy. Accordingly, these factors have been frequently seen as obstacles to IT implementation in a typical emerging market economy.