Institute of Economic Research
Topic
On construction of exchange rate policy rule in high inflationary periods
PhD. program
Year of admission
2024
Name of the supervisor
Ing. Mária Širaňová, MA., PhD.
Contact:
Receiving school
Národohospodárska fakulta EU
Annotation
Itskhoki and Mukhin (2022) theorized that a combination of standard monetary policy using changes in the key interest rate and exchange rate policy is necessary to achieve an efficient allocation of resources in an open economy, especially in the case of segmented financial markets. The aim of this dissertation is to discuss the design of an exchange rate rule under different combinations of exchange rate regime flexibility, capital openness and using the standard monetary policy instrument, the key interest rate (Khatat et al., 2020). At the same time, the dissertation will discuss the issue of possible nonlinearities during high-inflation periods. The design of the exchange rate rule will also tackle the issue of uncertainty in exchange rate policy decision making.