Applying Foreign Exchange Interventions as an Additional Instrument Under Inflation Targeting: The Case of Ukraine
Journal Title: Visnyk of the National Bank of Ukraine - Year 2016, Vol 0, Issue 238
Abstract
This study examines applying foreign exchange rate interventions under Inflation Targeting regime in an Emerging Economy. For this purpose, we employ the Quarterly Projection Model of the National Bank of Ukraine and simulate different policy responses to various macroeconomic shocks. We discuss monetary policy objectives, which are low inflation volatility and accumulation of international reserves, and conclude that monetary policy could benefit from using interventions in addition to the key policy rate. We advise on particular policy reactions (with or without FX intervention) in case of different macroeconomic shocks.
Authors and Affiliations
Anton Grui, Volodymyr Lepushynskyi
Keywords
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- EP ID EP426541
- DOI 10.26531/vnbu2016.238.039
- Views 123
- Downloads 0
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