Series: IMF Working Papers
Author(s): Ananthakrishnan Prasad , and Raphael Espinoza
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 May 2012
Keywords: Transmission mechanism, Fixed exchange rate regime, interest rate pass-through, panel VAR, inflation, central bank, monetary fund, monetary shocks,
The GCC countries maintain a policy of open capital accounts and a pegged (or nearly-pegged) exchange rate, thereby reducing their freedom to run an independent monetary policy. This paper shows, however, that the...