Narrow your search

Library

National Bank of Belgium (1)

ULB (1)

Vlaams Parlement (1)


Resource type

book (1)


Language

English (1)


Year
From To Submit

2011 (1)

Listing 1 - 1 of 1
Sort by

Book
Incorporating Financial Stability in Inflation Targeting Frameworks
Authors: ---
ISBN: 1463991398 1463982860 1283554348 9786613866790 1463906110 Year: 2011 Publisher: Washington, D.C. : International Monetary Fund,

Loading...
Export citation

Choose an application

Bookmark

Abstract

The global financial crisis has exposed the limitations of a conventional inflation targeting (IT) framework in insulating an economy from shocks, and demonstrated that its rigid application may aggravate the effect of shocks on output and inflation. Accordingly, we investigate possible refinements to the IT framework by incorporating financial stability considerations. We propose a small open economy DSGE model, calibrated for Korea during the period of 2003 - 07, with real and financial frictions. The findings indicate that incorporating financial stability considerations can help smooth business cycle fluctuations more effectively than a conventional IT framework.

Listing 1 - 1 of 1
Sort by