Monetary policy reaction dynamics in a developing economy: evidence for the Dominican Republic

Jose R. Sanchez-Fung ()
Additional contact information
Jose R. Sanchez-Fung: NUBS University of Nottingham, Ningbo, China

No 2003-13, Economics Discussion Papers from School of Economics, Kingston University London

Abstract: This paper investigates the information content of money, exchange rates, and foreign variables on real income and prices in the Dominican Republic. The results show that the change in the exchange rate -adjusted to account for financial conditions in the US- is a robust predictor of both real income and prices. Money and foreign reserves also contain significant information on prices. These outcomes highlight the pervasive role of the exchange rate and foreign financial conditions on macroeconomic developments in small developing economies.

Keywords: Information-variable approach to monetary analysis; Dominican Republic (search for similar items in EconPapers)
JEL-codes: E52 F41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2003-11-01
References: Add references at CitEc
Citations:

Downloads: (external link)
http://eprints.kingston.ac.uk/4671/ Full text (text/html)

Related works:
Working Paper: Monetary policy reaction dynamics in a developing economy: evidence for the Dominican Republic (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:kngedp:2003_013

Access Statistics for this paper

More papers in Economics Discussion Papers from School of Economics, Kingston University London Kingston University London, School of Economics, Penrhyn Road, Kingston upon Thames, Surrey, KT1 2EE, UK. Contact information at EDIRC.
Bibliographic data for series maintained by Andrea Ingianni ().