FX Intervention in the New Keynesian Model

FX Intervention in the New Keynesian Model
We develop an open economy New Keynesian Model with foreign exchange intervention in the presence of a financial accelerator mechanism. We obtain closed-form solutions for the optimal interest rate policy and FX intervention under discretionary policy, in the face of shocks to risk appetite in international capital markets. The... READ MORE...

Publication date: September 2017
ISBN 9781484320617
$18.00

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