Economics, Econometrics and Finance
4 years ago

Monetary Policy Study Reveals Impact on Exchange Rate Volatility

1 view
The Review of Economic Studies
Monetary Policy and Exchange Rate Volatility in a Small Open Economy
Jordi Galı́, Tommaso Monacelli

Paper Summary

The article explores how monetary policy affects exchange rate volatility in a small open economy. The researchers found that a more aggressive monetary policy can lead to higher exchange rate volatility. This means that changes in interest rates by central banks can impact how much a country's currency fluctuates in value compared to other currencies.

Related papers

Economics, Econometrics and Finance
4 years ago

Central Banks Urged to Aggressively Respond to Inflation and Output Gaps

Monetary Models
Macroeconomic Analysis
Macroeconomic Trends
1 view
Economics, Econometrics and Finance
4 years ago

Output gap uncertainty in Taylor rule leads to suboptimal monetary policy.

Macroeconomic Analysis
Macroeconomic Trends
Monetary Models
2 views
Economics, Econometrics and Finance
4 years ago

Brazil's Inflation Stabilized by Changing Interest Rate Response, Study Finds.

Macroeconomic Trends
Economic Growth
Infrastructure Impact
1 view