Policy responses to exchange-rate movements
By: Laurence M. Ball.
Contributors: National Bureau of Economic Research.
Series: NBER working paper series -- working paper 15173; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 15173.
Publisher: National Bureau of Economic Research
Published: 2009
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "This paper examines policy responses to exchange-rate movements in a simple model of an open economy.  The optimal response of monetary policy to an exchange-rate change depends on the source of the change: on whether the underlying shock is a shift in capital flows, manufactured exports, or commodity prices.  The paper compares the model's prescriptions to the policies of an actual central bank, the Bank of Canada.  Finally, the paper considers the role of fiscal policy in an open economy.  Coordinated fiscal and monetary responses to exchange-rate movements stabilize output at the sectoral as well as aggregate level"--National Bureau of Economic Research web sit.
Notes: Title from PDF file as viewed on 8/17/2009.

Includes bibliographical references.

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