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About Can a Rule-Based Monetary Policy Framework Work in a Developing Country? The Case of Yemen
Monetary policy in Yemen is largely rudimentary and ad hoc in nature The Central Bank of Yemen s CBY approach has been based on discretionary targeting of broad money without any clear target to anchor inflation expectations This paper argues in favor of a new formal monetary policy framework for Yemen emphasizing a proactive and rule based approach with a greater direct focus on price stability in the context of a flexible management of the exchange rate Although as in many developing countries institutional capacity is a concern adopting a more formal framework could impel the kind of changes that are required to strengthen the ability of the CBY in achieving low and stable rates of inflation over the medium term
Detailed Information
Author: | Selim Elekdag |
---|---|
Publication Year: | 2007 |
ISBN: | 9781452755175 |
Language: | English |
File Size: | 1.2 |
Format: | |
Price: | FREE |
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