Monetary policy in an unbalanced global economy

dc.contributor.author Fornaro, Luca
dc.contributor.author Romei, Federica
dc.date.accessioned 2023-09-05T11:24:21Z
dc.date.available 2023-09-05T11:24:21Z
dc.date.issued 2023-06
dc.description.abstract We study optimal monetary policy during times of exceptionally high global demand for tradable goods, relative to non-tradable ones. The optimal monetary response entails a rise in inflation, which helps rebalance production towards the tradable sector. While the inflation costs are fully bore domestically, however, the gains in terms of higher supply of tradable goods partly spill over to the rest of the world. National central banks may thus fall into a coordination trap, and implement an excessively tight monetary policy causing an unnecessarily sharp global contraction.ca
dc.format.mimetype application/pdf*
dc.identifier.uri http://hdl.handle.net/10230/57814
dc.language eng
dc.language.iso engca
dc.rights.accessRights info:eu-repo/semantics/openAccessca
dc.subject.keyword Global inflationen
dc.subject.keyword Capital flowsen
dc.subject.keyword Sectoral reallocationen
dc.subject.keyword International monetary cooperationen
dc.subject.keyword Global supply shortagesen
dc.subject.keyword Competitive exchange rate appreciationsen
dc.subject.keyword Trade imbalancesen
dc.title Monetary policy in an unbalanced global economyca
dc.type info:eu-repo/semantics/workingPaperca

Col·leccions