Monetary Policy in Fossil Fuel Exporters
This paper examines the role of monetary policy in fossil fuel exporters at different horizons. The main argument is that central banks in these economies need to look beyond the horizon of the business cycle. In the short run, (independent) monetary policy should flexibly target inflation. In the medium run, central banks need to coordinate with fiscal authorities to ensure that monetary policy operates around a credible and sustainable fiscal anchor. In the long run, central banks should beware of the existential threats posed by new risks related to stranded assets.
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| Main Author: | |
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019-06
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| Subjects: | MONETARY POLICY, COMMODITY EXPORTERS, POLICY COORDINATION, STRANDED ASSETS, OIL PRICE, TERMS OF TRADE SHOCK, PRICE VOLATILITY, EXCHANGE RATE REGIME, BUSINESS CYCLE, INFLATION TARGET, |
| Online Access: | http://documents.worldbank.org/curated/en/237551560255567369/Monetary-Policy-in-Fossil-Fuel-Exporters-The-Curse-of-Horizons https://hdl.handle.net/10986/31871 |
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