Fiche du document
2017
- handle: 10670/1.scm1j3
- halshs: halshs-01614817
info:eu-repo/semantics/OpenAccess
Mots-clés
exchange rate pass-through inflation targeting exchange rate regime propensity score matching E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E31 - Price Level • Inflation • Deflation E - Macroeconomics and Monetary Economics/E.E4 - Money and Interest Rates/E.E4.E42 - Monetary Systems • Standards • Regimes • Government and the Monetary System • Payment Systems E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit/E.E5.E52 - Monetary Policy C - Mathematical and Quantitative Methods/C.C3 - Multiple or Simultaneous Equation Models • Multiple Variables/C.C3.C30 - GeneralSujets proches
Monetary managementCiter ce document
Antonia López-Villavicencio et al., « IT Countries: A Breed Apart? the case of Exchange Rate Pass-Through », HAL-SHS : économie et finance, ID : 10670/1.scm1j3
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Résumé
This paper estimates the effects of two monetary policy strategies in the exchange rate pass-through (ERPT). To this end, we employ propensity score matching and consider the adoption of a target by a country as a treatment to find suitable counterfactuals to the actual targeters. By controlling for self-selection bias and endogeneity of the monetary policy regime, we show that inflation target has helped in reducing the ERPT, with older regimes more successful than younger ones. However, a de facto flexible exchange rate regime has not noticeable advantages to reduce the extent to which exchange rate fluctuations contribute to inflation instability.