Identifying the effects of simultaneous monetary policy shocks : fear of floating under inflation targeting

Borradores de Economia
Número: 
835
Publicado: 
Clasificación JEL: 
E31, E43, E52, E58, F31
Palabras clave: 
Central bank intervention, Simultaneous policies, Monetary shocks, Price puzzle

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Many central banks, particularly in the developing world, aim for exchange rate stability as a macroeconomic goal. However, most are reluctant to relinquish monetary policy autonomy, so they end up operating through both interest rate and foreign exchange