Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Discretion of the Monetary Policy: An Exemplification with Bolivia

Discretion of the Monetary Policy: An Exemplification with Bolivia AbstractIn this paper, we evaluate and quantify the role of the discretion of the monetary policy in an open small and open economy (the case of Bolivia). The results suggest that conventional instruments of the Central Bank respond in different ways: interest rates present a sensitive/elastic response to output gap (actual economic cycle) [1.8]; an inelastic mechanism to inflation [0.5]. On the other hand, open market operations in the Central Bank responds elastically to inflation [1.2] and insensible to the output gap. These results are robust to alternative specification utilizing the Generalized Method of moments (GMM), for the quarterly period from 2000(T1)-2015(T4). http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Scientific Annals of Economics and Business de Gruyter

Loading next page...
 
/lp/de-gruyter/discretion-of-the-monetary-policy-an-exemplification-with-bolivia-SswVyPSziq
Publisher
de Gruyter
Copyright
© 2019 Roger Alejandro Banegas Rivero et al., published by Sciendo
eISSN
2501-3165
DOI
10.2478/saeb-2019-0006
Publisher site
See Article on Publisher Site

Abstract

AbstractIn this paper, we evaluate and quantify the role of the discretion of the monetary policy in an open small and open economy (the case of Bolivia). The results suggest that conventional instruments of the Central Bank respond in different ways: interest rates present a sensitive/elastic response to output gap (actual economic cycle) [1.8]; an inelastic mechanism to inflation [0.5]. On the other hand, open market operations in the Central Bank responds elastically to inflation [1.2] and insensible to the output gap. These results are robust to alternative specification utilizing the Generalized Method of moments (GMM), for the quarterly period from 2000(T1)-2015(T4).

Journal

Scientific Annals of Economics and Businessde Gruyter

Published: Mar 1, 2019

There are no references for this article.