The Portfolio Theory of Inflation and Policy (In)Effectiveness

• Tác giả: Biagio Bossone
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.46 Monetary policy
• Thông tin xuất bản: Taylor and Francis, 2023
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 293743
• Chủ đề: 1. CREDIBILITY; 2. GLOBAL INVESTORS; 3. POLICY SPACE

Tóm tắt

This article revisits the Portfolio Theory of Inflation (PTI), with a view to further articulating its findings and implications. The article adds to the micro-foundations of the PTI, framing more rigorously the role of global investors as international allocators of capital resources, and providing richer analysis of their interaction with macroeconomic policies at country level. The article explores how country credibility enters the capital allocation choice process of global investors and how global investor choices shape the space available to country policy making, determining the extent to which the effect of macro-policies dissipates into exchange rate depreciation and higher inflation.