Optimal Monetary Policy under Balance-Sheet Effects on the Non-tradable Sector in a Small Open Economy

References

• Aghion, P., Bacchetta, P., Ranciere, R., & Rogoff, K. (2009). Exchange rate volatility and productivity growth: The role of financial development. Journal of Monetary Economics, 56(4), 494–513. https://doi.org/10.1016/j.jmoneco.2009.03.015
   Web of Science ®Google Scholar
• Benigno, G., Chen, H., Otrock, C., Rebucci, A., & Young, E. R. (2012). Monetary and macro-prudential policies: An integrated analysis. Journal of Money and Economy, 7(1), 1–40.
   Google Scholar
• Benigno, G., Chen, H., Otrok, C., Rebucci, A., & Young, E. R. (2013). Financial crises and macro-prudential policies. Journal of International Economics, 89(2), 453–470. https://doi.org/10.1016/j.jinteco.2012.06.002
   Web of Science ®Google Scholar
• Benigno, G., Chen, H., Otrok, C., Rebucci, A., & Young, E. R. (2016). Optimal capital controls and real exchange rate policies: A pecuniary externality perspective. Journal of Monetary Economics, 84(2), 147–165. https://doi.org/10.1016/j.jmoneco.2016.10.004
   Google Scholar
• Borensztein, E., & Berg, A. (2000). The pros and cons of full dollarization (IMF Working Papers 00/50). International Monetary Fund.
   Google Scholar
• Caballero, R., & Krishnamurthy, A. (2005). Exchange rate volatility and the credit channel in emerging markets: A vertical perspective. International Journal of Central Banking, 1(1), 207–245.
   Google Scholar
• Calvo, G., Izquierdo, A., & Loo-Kung, R. (2013). Optimal holdings of international reserves: Self-insurance against sudden stops. Monetaria, 1(1), 1–35.
   Google Scholar
• Calvo, G. A., & Reinhart, C. M. (2002). Fear of floating. The Quarterly Journal of Economics, 117(2), 379–408. https://doi.org/10.1162/003355302753650274
   Web of Science ®Google Scholar
• Céspedes, L. F., Chang, R., & Velasco, A. (2004). Balance sheets and exchange rate policy. American Economic Review, 94(4), 1183–1193. https://doi.org/10.1257/0002828042002589
   Web of Science ®Google Scholar
• Chang, R. (2018). Foreign exchange intervention redux (NBER Working Papers 24463). National Bureau of Economic Research, Inc.
   Google Scholar
• Chen, H., Young, E., Otrok, C., Rebucci, A., & Benigno, G. (2013). Optimal policy for macro-financial stability (Technical Report).
   Google Scholar
• Contreras, A., Gondo, R., Oré, E., & Pérez, F. (2019). Evaluando el impacto de las medidas de desdolarización del crédito en el Perú (Working Papers 2019-005). Banco Central de Reserva del Perú.
   Google Scholar
• De Paoli, B. (2009a). Monetary policy and welfare in a small open economy. Journal of International Economics, 77(1), 11–22. https://doi.org/10.1016/j.jinteco.2008.09.007
   Web of Science ®Google Scholar
• De Paoli, B. (2009b). Monetary policy under alternative asset market structures: The case of a small open economy. Journal of Money, Credit and Banking, 41(7), 1301–1330. https://doi.org/10.1111/jmcb.2009.41.issue-7
   Web of Science ®Google Scholar
• Devereux, M. (2004). Should the exchange rate be a shock absorber? Journal of International Economics, 62(2), 359–377. https://doi.org/10.1016/S0022-1996(03)00050-3
   Web of Science ®Google Scholar
• Devereux, M. B., Lane, P. R., & Xu, J. (2006). Exchange rates and monetary policy in emerging market economies. The Economic Journal, 116(511), 478–506. https://doi.org/10.1111/j.1468-0297.2006.01089.x
   Web of Science ®Google Scholar
• Devereux, M. B., & Poon, D. (2011). Monetary policy in economic crises: A simple model of policy with external financial constraints. International Economic Journal, 25(4), 683–711. https://doi.org/10.1080/10168737.2011.636630
   Google Scholar
• Durdu, C., Mendoza, E., & Terrones, M. (2009). Precautionary demand for foreign assets in sudden stop economies: An assessment of the new mercantilism. Journal of Development Economics, 89(2), 194–209. https://doi.org/10.1016/j.jdeveco.2008.01.010
   Web of Science ®Google Scholar
• Faia, E., & Monacelli, T. (2008). Optimal monetary policy in a small open economy with home bias. Journal of Money, Credit and Banking, 40(4), 721–750. https://doi.org/10.1111/j.1538-4616.2008.00133.x
   Web of Science ®Google Scholar
• Ganesh-Kumar, A., Sen, K., & Vaidya, R. (2001). Outward orientation, investment and finance constraints: A study of Indian firms. Journal of Development Studies, 37(4), 133–149. https://doi.org/10.1080/00220380412331322071
   Web of Science ®Google Scholar
• Gertler, M., Gilchrist, S., & Natalucci, F. M. (2007). External constraints on monetary policy and the financial accelerator. Journal of Money, Credit and Banking, 39(2–3), 295–330. https://doi.org/10.1111/jmcb.2007.39.issue-2-3
   Web of Science ®Google Scholar
• Ghironi, F., & Melitz, M. J. (2005). International trade and macroeconomic dynamics with heterogeneous firms. The Quarterly Journal of Economics, 120(3), 865–915. https://doi.org/10.1093/qje/120.3.865
   Web of Science ®Google Scholar
• Hausmann, R., Panizza, U., & Stein, E. (2001). Why do countries float the way they float? Journal of Development Economics, 66(2), 387–414. https://doi.org/10.1016/S0304-3878(01)00168-7
   Web of Science ®Google Scholar
• Honohan, P., & Shi, A. (2001). Deposit dollarization and the financial sector in emerging economies (Policy Research Working Paper Series 2748). The World Bank.
   Google Scholar
• Ito, H., & McCauley, R. N. (2019). The currency composition of foreign exchange reserves (BIS Working Papers 828). Bank for International Settlements.
   Google Scholar
• Kiyotaki, N., & Moore, J. (1997). Credit cycles. Journal of Political Economy, 105(2), 211–248. https://doi.org/10.1086/262072
   Web of Science ®Google Scholar
• Korinek, A., & Jeanne, O. (2013). Macroprudential regulation versus mopping up after the crash (Technical Report).
   Google Scholar
• Levi-Yeyati, E. (2006). Financial dollarization: evaluating the consequences. Economic Policy, 21(45), 61–118. https://doi.org/10.1111/j.1468-0327.2006.00154.x
   Google Scholar
• McKinnon, R. I. (1982). Currency substitution and instability in the world dollar standard. American Economic Review, 72(3), 320–333. https://www.jstor.org/stable/1831535
   Web of Science ®Google Scholar
• Mendoza, E. G., & Bianchi, J. (2010). Overborrowing, financial crises and 'macro-prudential' taxes. NBER Working Papers 16091. National Bureau of Economic Research, Inc.
   Google Scholar
• Mihaljek, D. (2005). Survey of central banks views on effects of intervention. In Bank for International Settlements (Ed.), Foreign exchange market intervention in emerging markets: Motives, techniques and implications (Volume 24 of BIS Papers chapters, pp. 82–96). Bank for International Settlements.
   Google Scholar
• Miles, M. A. (1978). Currency substitution, flexible exchange rates, and monetary independence. American Economic Review, 68(3), 428–436. https://www.jstor.org/stable/1805277
   Web of Science ®Google Scholar
• Obstfeld, M. (1998). Foreign resource inflows, saving, and growth (Center for International and Development Economics Research (CIDER) Working Papers 233618). Department of Economics, University of California-Berkeley.
   Google Scholar
• Obstfeld, M., & Rogoff, K. (2000). New directions for stochastic open economy models. Journal of International Economics, 50(1), 117–153. https://doi.org/10.1016/S0022-1996(99)00034-3
   Web of Science ®Google Scholar
• Sanchez, A. (2006). Financial dollarization, the portfolio approach and expectations: Evidence for Latin America (1995–2005) (Working Papers 2006-010). Banco Central de Reserva del Perú.
   Google Scholar
• Schmitt-Grohé, S., & Uribe, M. (2007). Optimal simple and implementable monetary and fiscal rules. Journal of Monetary Economics, 54(6), 1702–1725. https://doi.org/10.1016/j.jmoneco.2006.07.002
   Web of Science ®Google Scholar
• Sutherland, A. (2005). Incomplete pass-through and the welfare effects of exchange rate variability. Journal of International Economics, 65(2), 375–399. https://doi.org/10.1016/j.jinteco.2004.01.005
   Web of Science ®Google Scholar
• Tornell, A., & Westermann, F. (2002). The credit channel in middle income countries (October 2002) (UCLA Economics Online Papers 216). UCLA Department of Economics.
   Google Scholar