Applying Foreign Exchange Interventions as an Additional Instrument Under Inflation Targeting: The Case of Ukraine

Visnyk of the National Bank of Ukraine

Volodymyr Lepushynskyi¹  Anton Grui¹ 

[1] National Bank of Ukraine;

关键词: monetary policy;    macroeconomic models;    inflation targeting;    foreign exchange interventions;   

DOI  :  10.26531/vnbu2016.238.039

来源: DOAJ

【 摘 要 】

This study examines applying foreign exchange interventions under Inflation Targeting regime in an emerging market economy. For this purpose, we employ the Quarterly Projection Model of the National Bank of Ukraine and simulate different policy responses to various macroeconomic shocks. We discuss monetary policy objectives, which are low inflation volatility and accumulation of international reserves, and conclude that monetary policy could benefit from using interventions in addition to the key policy rate. We advise on particular policy reactions (with or without FX intervention) in case of different macroeconomic shocks.

【 授权许可】

Unknown