Policy Framework for Open Economies

Tobias Adrian and Gita Gopinath wrote on the IMF Blog here.

Below is the Excerpt, for the Inquiring mind:

"...deploying unconventional tools on foreign currency exposure and financial market developments, the communication challenges when multiple instruments are used, among others. The combined work, which will be discussed by the IMF’s Executive Board in the fall, should provide useful insights to policy makers on how to deploy multiple tools with special attention to the form of the shock, the specific frictions, the pre-existing conditions, alongside practical considerations."

Happy Reading.