Please use this identifier to cite or link to this item: https://hdl.handle.net/20.500.11851/7231
Title: Optimal monetary policy regime for oil producing developing economies: Implications for post-war Iraq
Authors: Taş, Bedri Kamil Onur
Togay, Selahattin
Keywords: Credibility
Partial information
Kalman filter
Monetary policy
Issue Date: 2010
Publisher: Elsevier
Abstract: This paper theoretically investigates optimal monetary policy regime for oil producing developing countries. We analyze credibility and reputation of the Central Bank and macroeconomic dynamics under alternative monetary policy regimes. We construct a detailed and realistic model that can be used to analyze macroecomic structure and expectation dynamics of an oil producing open economy. We take into account the asymmetric information between the public and the central bank and theoretically investigate how this asymmetric information impacts the real economy and the credibility of the central bank. The simulation results indicate that central bank achieves higher credibility and lower inflation under dollarization and higher output levels under currency board regime. The model constructed in this paper has many policy implications for oil producing open economies. Using the implications of the model, we make monetary policy regime recommendations for post-war Iraq. (C) 2010 Elsevier B.V. All rights reserved.
URI: https://doi.org/10.1016/j.econmod.2010.01.001
https://hdl.handle.net/20.500.11851/7231
ISSN: 0264-9993
1873-6122
Appears in Collections:İktisat Bölümü / Department of Economics
Scopus İndeksli Yayınlar Koleksiyonu / Scopus Indexed Publications Collection
WoS İndeksli Yayınlar Koleksiyonu / WoS Indexed Publications Collection

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