Monetary Growth Rules in an Emerging Open Economy [Revise & Resubmit]
We develop a small open economy model interacting with a rest-of-the-world bloc, containing relevant emerging economies’ features: incomplete exchange rate pass-through, limited asset markets participation (LAMP), as well as an informal sector. We show that monetary growth rules are stable regardless of the level of asset market participation, i.e. they avoid the inversion of the Taylor principle, unlike standard interest rate rules. Estimation results reveal that shocks are amplified by the presence of LAMP, trade autarky further intensifies the effects of financial frictions, while the informal sector acts as buffer, lowering the variability of aggregate and formal fluctuations.
''The impact of exchange rate volatility on foreign direct investment in Iran'' with Hosein Sharifi - Procedia Economics and Finance - Vol. 1, pages 365-373, July 2012.
''Analysis the Impact of Good Governance on the Non-Oil Export of Oil Exporting Countries'' with Hosein Sharifi, Hassan Mollaesmaeili - Journal of Economic Policy and Research - Vol. 8(1), pages 1-14, March 2013.
''Imperfect Exchange Rate Pass through: Empirical Evidence and Monetary Policy Implications'' with Paul Levine, Vasco Gabriel (UVIC).
''Monetary Growth Rules in an Emerging Open Economy'' with Paul Levine, Vasco Gabriel (UVIC). (Revise & Resubmitted)
Works in Progress
''Optimal Liquidity Provisions and Interest Rate Rules'' with Paul Levine, Joseph Pearlman (CUL), Stylianos Tsiaras (UNIL).
''Imperfect Exchange Rate Pass through: A Tale of Two Countries'' with Paul Levine, Vasco Gabriel (UVIC).
"Monetary Policy Implications of Dominant, vs Local vs Producer Currency Pricing"
''Optimal Monetary and Forex Intervention Rules in a open economy framework'' with Leilane Cambara, Paul Levine, Vasco Gabriel (UVIC).