How should central banks respond to commodity price shocks? Optimal monetary and exchange rate frameworks for commodity-exposed economies
· bankofengland.co.uk
We show that the optimal monetary policy and exchange rate framework depend critically on the economy’s commodity exposure.
Staff Working Paper No. 1,186
Thomas Drechsel, Michael McLeay, Silvana Tenreyro and Enrico D Turri
We show that the optimal monetary policy and exchange rate ...