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Title: |
Policy Assignments for Central Bank Activities |
| Author: |
Joyce, Joseph
P. |
| Author
Affiliation: |
Wellesley Col |
| Source: |
International Economic Journal, Winter 1988, v. 2, no. 4, pp. 9-20 |
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Publication Date: |
Winter 1988 |
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Abstract: |
This paper contrasts different policy
assignments for central bank operations. Two types of asset market
transactions (domestic, foreign) and two policy targets (interest rate,
exchange rate) are examined within a portfolio-balance model. It is
demonstrated that assigning domestic asset transactions to the internal
target, and foreign asset transactions to the external target, produces
stable policy paths, while the opposite assignment does not. |
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