The effectiveness of exchange-rate-based monetary policy: evidence from survey data |
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| Authors: | Paolo Bianchi Bruno Deschamps |
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| Institution: | Nottingham University Business School China, University of Nottingham Ningbo China, Ningbo, China |
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| Abstract: | Singapore’s monetary policy is centred on the management of the exchange rate. We examine how macroeconomic forecasters perceive the effectiveness of this unconventional policy. We provide empirical evidence that forecasters’ expectations are consistent with a forward-looking exchange-rate-based Taylor-type policy rule. They expect monetary authorities to actively manage the currency against expected future changes in inflation and output. |
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| Keywords: | Monetary policy exchange rate forecasting survey data |
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