Next Article in Journal
Information Frictions and Stock Returns
Previous Article in Journal
Technology Acceptance in e-Governance: A Case of a Finance Organization
Open AccessArticle

Do Capital Flows Matter for Monetary Policy Setting in Inflation Targeting Economies?

Department of Economics, University of Bath, Bath B2A 7AY, UK
*
Author to whom correspondence should be addressed.
J. Risk Financial Manag. 2020, 13(7), 139; https://doi.org/10.3390/jrfm13070139
Received: 10 June 2020 / Revised: 23 June 2020 / Accepted: 28 June 2020 / Published: 30 June 2020
The aim of this study is to determine if capital flows can account for the international effects on domestic monetary policy, using an augmented Taylor rule model. In addition to the standard determinants of nominal interest rates, we include capital flow measures to show how central banks consider this important factor when deciding on the most appropriate monetary policy. Using a panel of inflation targeting economies and the dynamic panel approach, this study finds that capital inflows and outflows are an important determinant of nominal interest rates. View Full-Text
Keywords: capital flow; Taylor rule; interest rate capital flow; Taylor rule; interest rate
MDPI and ACS Style

Arimurti, T.; Morley, B. Do Capital Flows Matter for Monetary Policy Setting in Inflation Targeting Economies? J. Risk Financial Manag. 2020, 13, 139.

Show more citation formats Show less citations formats
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Article Access Map by Country/Region

1
Search more from Scilit
 
Search
Back to TopTop