Quantitative Easing in an Open Economy: Prices, Exchange Rates and Risk Premia

Udara Peiris and Herakles Polemarchakis

No 270000, Economic Research Papers from University of Warwick - Department of Economics

Abstract: Explicit targets for the composition of assets traded by governments are necessary for fiscal-monetary policy to determine the stochastic paths of inflation or exchange rates; this is the case even if fiscal policy is non-Ricardian. Targets obtain with the traditional conduct of monetary policy and Credit Easing, but not with unconventional policy and Quantitative Easing. The composition of the portfolios traded by monetary-fiscal authorities determines premia in asset and currency markets.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 24
Date: 2015-12-12
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Quantitative Easing in an Open Economy: Prices, Exchange Rates and Risk Premia (2015)
Working Paper: Quantitative Easing in an Open Economy: Prices, Exchange Rates and Risk Premia (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:270000

DOI: 10.22004/ag.econ.270000

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