[2023학년도 1학기]

경제학부 특강(세미나) 8차

– 일시 : 6월 1일(목) 12시~13시

– 장소 : 미래관 906호

– 주제 :  Incomplete Exchange Rate Pass-Through,  Imperfect Financial Market Integration and  Optimal Monetary Policy

– 연사 : 한원태 박사님 (KIEP-대외경제정책연구원)

–  Abstract :

How do incomplete exchange rate pass-through and imperfect financial market integration affect the goal and the effectiveness of optimal monetary policy? We augment a standard monetary

open economy model by incorporating both heterogeneity among exporters in their currency invoicing and capital controls, and generalize the global loss function in Corsetti et al. (2020) to

the economy in which producers of producer currency pricing (PCP) and local currency pricing (LCP) coexist. Our global loss function suggests that cooperative policymakers should concern

price dispersion among imported goods which are invoiced in different currencies because exchange rate fluctuations disperse their retail prices under nominal rigidities. We characterize

optimal targeting rules under special parameter values and show that the policy stance is independent of the degree of cross-country risk sharing in the regime of LCP. By contrast, in the

regime of PCP, the targeting rule implies that PPI inflation should respond more to external target and less to output gap as the cross-country financial integration deteriorates under the

trade elasticity greater than unity. Our numerical analysis reveals that the nature of shocks, the degree of exchange rate pass-through, and the degree of financial market integration jointly

determine which measure of inflation (CPI vs. PPI) should be targeted by policymakers.