Optimal monetary policy in a 'sudden stop'

• 成果类型: Article
• 署名作者: Braggion, Fabio; Christiano, Lawrence J.; Roldos, Jorge
• 署名单位: Northwestern University; Tilburg University; National Bureau of Economic Research; International Monetary Fund
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2009.03.010
• 发表日期: 2009
• 页码: 582-595
• 关键词: Collateral constraint; Friedman rule; Small open economy

摘要

In the wake of the 1997-98 financial crises, interest rates in Asia were raised immediately, and then reduced sharply. We describe an environment in which this is the optimal monetary policy. The optimality of the immediate rise in the interest rate is an example of the theory of the second best: although high interest rates introduce an inefficiency wedge into the labor market, they are nevertheless welfare improving because they mitigate distortions due to binding collateral constraints. Over time, as the collateral constraint is less binding, the familiar Friedman forces dominate and interest, rates are optimally set as low as possible. (C) 2009 Published by Elsevier B.V.