BibTex RIS Cite
Year 2016, Volume: 6 Issue: 4, 1392 - 1399, 01.09.2016

Abstract

Monetary Policy Response to Exchange Rates: An Empirical Investigation

Year 2016, Volume: 6 Issue: 4, 1392 - 1399, 01.09.2016

Abstract

Notwithstanding exchange rate stability concerns in practice, exchange rate arguments are often omitted from monetary policy analysis and simple interest rate rules do not comprise exchange rate arguments even in small open economy set-ups. In order to identify the role of exchange rates in monetary policy conduct, we append them into a Taylor type of rule and examine their effect on policy interest rates in the US, UK, Canada, and Norway by utilizing General Method of Moments (GMM). The results suggest that for big and relatively closed economies, such as the US, exchange rate movements do not lead to significant response in policy interest rates. Nevertheless, for small open economies, both exchange rate variability and exchange rate levels are significant in monetary policy conduct.

There are 0 citations in total.

Details

Other ID JA32UB78KT
Journal Section Research Article
Authors

Mete Han Yagmur This is me

Publication Date September 1, 2016
Published in Issue Year 2016 Volume: 6 Issue: 4

Cite

APA Yagmur, M. H. (2016). Monetary Policy Response to Exchange Rates: An Empirical Investigation. International Journal of Economics and Financial Issues, 6(4), 1392-1399.
AMA Yagmur MH. Monetary Policy Response to Exchange Rates: An Empirical Investigation. IJEFI. September 2016;6(4):1392-1399.
Chicago Yagmur, Mete Han. “Monetary Policy Response to Exchange Rates: An Empirical Investigation”. International Journal of Economics and Financial Issues 6, no. 4 (September 2016): 1392-99.
EndNote Yagmur MH (September 1, 2016) Monetary Policy Response to Exchange Rates: An Empirical Investigation. International Journal of Economics and Financial Issues 6 4 1392–1399.
IEEE M. H. Yagmur, “Monetary Policy Response to Exchange Rates: An Empirical Investigation”, IJEFI, vol. 6, no. 4, pp. 1392–1399, 2016.
ISNAD Yagmur, Mete Han. “Monetary Policy Response to Exchange Rates: An Empirical Investigation”. International Journal of Economics and Financial Issues 6/4 (September 2016), 1392-1399.
JAMA Yagmur MH. Monetary Policy Response to Exchange Rates: An Empirical Investigation. IJEFI. 2016;6:1392–1399.
MLA Yagmur, Mete Han. “Monetary Policy Response to Exchange Rates: An Empirical Investigation”. International Journal of Economics and Financial Issues, vol. 6, no. 4, 2016, pp. 1392-9.
Vancouver Yagmur MH. Monetary Policy Response to Exchange Rates: An Empirical Investigation. IJEFI. 2016;6(4):1392-9.