2013.4.1[IMF] Measuring and Mending Monetary Policy Effectiveness Under Capital Account Restrictions—Lessons from Mauritania
2013. 4. 1.
I propose a new approach to identifying exogenous monetary policy shocks in low-income countries with capital account restrictions. In the case of Mauritania, a domestic repatriation requirement is the key institutional characteristic that allows me to establish exogeneity. Unlike in advanced countries, I find no evidence for a statistically significant impact of exogenous monetary policy shocks..
