Exchange rate determination under interest rate rules

Journal of International Money and Finance

Volumn 27, Issue 6, 2008, Pages 971-993

  Benigno, Gianluca ^a   Benigno, Pierpaolo ^b  

^a LONDON SCHOOL OF ECONOMICS   (United Kingdom)

^b LUISS UNIVERSITY   (Italy)

Author keywords

Exchange rate regimes; Interest rate rules

Indexed keywords

EID: 49249124560     PISSN: 02615606     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jimonfin.2008.04.009     Document Type: Article

References (27)

1. Ball L. Policy rules for open economy. In: Taylor J.B. (Ed). Monetary Policy Rules (1999), University of Chicago Press 127-144
2. Benigno P. Optimal monetary policy in a currency area. Journal of International Economics 63 2 (2004) 293-320
3. Benigno, G., Benigno, P., 2001. Monetary Policy Rules and the Exchange Rate. CEPR Working Paper No. 2807.
4. Benigno G., and Benigno P. Designing targeting rules for international monetary policy cooperation. Journal of Monetary Economics 53 3 (2006) 473-506
5. Benigno G., Benigno P., and Ghironi F. Interest rate rules for fixed exchange rate regimes. Journal of Economic Dynamics and Control 31 (2007) 2196-2211
6. Beveridge S., and Nelson C.R. A new approach to the decomposition of economic time series into permanent and transitory components with particular attention to measurement of the business cycle. Journal of Monetary Economics 7 (1981) 151-174
7. Calvo G.A. Staggered prices in a utility-maximizing framework. Journal of Monetary Economics 12 (1983) 383-398
8. Chari V.V., Kehoe P.J., and McGrattan E.R. Can sticky price models generate volatile and persistent real exchange rates?. Review of Economic Studies 69 (2002) 533-563
9. Clarida R., Galí J., and Gertler M. Monetary policy rules in practice: some international evidence. European Economic Review 42 (1998) 1033-1068
10. De Fiore F., and Liu Z. Does trade openness matter for aggregate instability?. Journal of Economic Dynamics and Control 29 7 (2005) 1165-1192
11. Galí J., and Monacelli T. Monetary policy and exchange rate volatility in a small open economy. Review of Economic Studies 72 (2005) 707-734
12. Ghironi, F., 1998. Alternative Monetary Policy Rules: the Case of Canada. BC Econ. Dept. Working Paper 466.
13. Giannoni, M., 2000. Optimal interest-rate rules in a forward-looking model and inflation stabilization versus price-level stabilization. Federal Reserve Bank of New York, Unpublished Manuscript.
14. Kerr W., and King R.G. Limits on interest rate rules in the IS model. Quarterly Review 82 2 (1996) 47-75
15. Kollman, R., 1998. International financial markets and business cycles: a general equilibrium approach with money and nominal rigidities. University of Paris XII, Unpublished Manuscript.
16. Laxton D., and Pesenti P. Monetary rules for small, open, emerging economies. Journal of Monetary Economics 50 5 (2003) 1109-1146
17. McCallum B.T., and Nelson E. Nominal income targeting in an open-economy optimizing model. Journal of Monetary Economics 43 (1999) 553-578
18. Monacelli T. Into the Mussa puzzle: monetary policy regimes and the real exchange rate in a small open economy. Journal of International Economics 62 (2004) 191-217
19. Obstfeld, M., 1997. Open Economy Macroeconomics: Developments in Theory and Policy. NBER Working Paper No. 6319.
20. Rotemberg J.J., and Woodford M. Interest-rate rules in an estimated sticky-price model. In: Taylor J.B. (Ed). Monetary Policy Rules (1999), University of Chicago Press
21. Svensson L.E. Inflation targeting as a monetary policy rule. Journal of Monetary Economics 43 (1999) 607-655
22. Svensson L.E. Open economy inflation targeting. Journal of International Economics 50 (2000) 155-183
23. Taylor J.B. Monetary Policy Rules (1999), University of Chicago Press
24. Weeparana, A., 1998. The performance of simple monetary policy rules in a model of asymmetric large open economies. Stanford University, Unpublished manuscript.
25. Woodford, M., 1996. Control of the public debt: a requirement for price stability? NBER Working Paper No. 5684.
26. Woodford M. Interest and Prices: Foundations of a Theory of Monetary Policy (2003), Princeton University Press
27. Yun T. Nominal price rigidity, money supply endogeneity, and business cycles. Journal of Monetary Economics 37 2 (1996) 345-370