Financial intermediation, real exchange rates, and unconventional policies in an open economy

• 成果类型: Article; Proceedings Paper
• 署名作者: Felipe Cespedes, Luis; Chang, Roberto; Velasco, Andres
• 署名单位: Universidad Adolfo Ibanez; Rutgers University System; Rutgers University New Brunswick; National Bureau of Economic Research; Columbia University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2016.12.012
• 发表日期: 2017
• 页码: S76-S86
• 关键词: Monetary policy; Exchange rates; financial frictions

摘要

We discuss unconventional policies in an open economy where financial intermediaries face occasionally binding collateral constraints. The model highlights interactions among the real exchange rate, interest rates, and financial frictions. The real exchange rate can affect international credit constraints via a net worth effect and a novel leverage ratio effect. Unconventional policies are non-neutral if financial constraints bind. Credit programs are most effective when targeted towards financial intermediaries. Sterilized interventions matter because the increased availability of tradables associated with sterilization relaxes financial frictions. (C) 2017 Elsevier B.V. All rights reserved.