IMF Working Papers

Monetary Policy Frameworks: An Index and New Evidence

By Filiz D Unsal, Chris Papageorgiou, Hendre Garbers

January 28, 2022

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Filiz D Unsal, Chris Papageorgiou, and Hendre Garbers. Monetary Policy Frameworks: An Index and New Evidence, (USA: International Monetary Fund, 2022) accessed December 21, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

We provide a multidimensional characterization of monetary policy frameworks across three pillars: Independence and Accountability, Policy and Operational Strategy, and Communications (IAPOC). We construct the IAPOC index by analyzing central banks’ laws and websites for 50 advanced economies, emerging markets, and low-income developing countries, from 2007 to 2018. Due to its scope and granularity, our index provides a holistic view of monetary policy frameworks which goes beyond existing measures of transparency or independence, as well as monetary policy or exchange rate regime classifications. Comparing the IAPOC index across countries and over time, we find that monetary policymaking is varied, fast-changing, and eclectic across the Policy and Operational Strategy and Communications pillars, especially in emerging markets and low-income developing countries.

Subject: Central bank autonomy, Central banks, Exchange rate arrangements, Exchange rate flexibility, Foreign exchange, Inflation targeting, Monetary policy, Monetary policy frameworks

Keywords: Africa, B. II, Central bank autonomy, Central Bank Independence, Central Bank Transparency, Central Banks, Exchange rate arrangements, Exchange rate flexibility, Exchange Rate Regime, Global, IAPOC index, Inflation targeting, Monetary Policy, Monetary policy frameworks, Monetary Policy Regime, Novel Policy, Regime classification, Strengthening of Independence, Transparency indices

Publication Details

  • Pages:

    51

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2022/022

  • Stock No:

    WPIEA2022022

  • ISBN:

    9798400201110

  • ISSN:

    1018-5941

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