000			01231nam a22001457a 4500
999			_c525088 _d525088
008			240209b ||||| |||| 00| 0 eng d
100			_aCoulibaly, Louphou _949795
245			_aMonetary policy in sudden stop-prone economies
260			_aAmerican Economic Journal: Macroeconomics
300			_a15(4), Oct, 2023: p.104-140
520			_aThis paper proposes a parsimonious theory explaining the cyclicality of monetary policy in emerging countries in a model where access to foreign financing depends on the real exchange rate and the government lacks commitment. The discretionary monetary policy is procyclical to mitigate balance sheet effects originating from exchange rate depreciations during sudden stops. Committing to an inflation targeting regime is found to increase social welfare and reduce the frequency of financial crises despite increasing their severity. Finally, the ability to use capital controls induces a less procyclical discretionary monetary policy and delivers higher welfare gains than an inflation targeting regime. – Reproduced https://www.aeaweb.org/articles?id=10.1257/mac.20200201
773			_aAmerican Economic Journal: Macroeconomics
906			_aMONETARY POLICY
942			_cAR