A Few White Papers
you are currently viewing::IMF Working paper-Long-Term Debt and Short-Term Rates: Fixed-Rate Mortgages and Monetary TransmissionJanuary 24, 2016--Summary Using instrumental-variablel local projections, we find both path-and state-dependency in monetary transmission. Monetary policy shapes mortgage choice, increasing (decreasing) the share of FRMs during easing (tightening) cycles. Over time, this mechanism alters the composition of the outstanding mortgage stock which, in turn, affects the central bank's ability to stabilize the economy ex-post. A greater (lower) prevalence of FRMs weakens (strengthens) monetary policy transmission to key macro-variables. Source: IMF |
IMF Working Papers-Inflation Targeting and the Legacy of High Inflation
April 11, 2025-Summary
As inflation targeting (IT) turns 35, it has become a key institutional monetary framework by central banks. Yet, this paper shows that stark differences exist among inflation targeting countries in the conduct of monetary policy. Behind such heterogeneity, the legacy of a high inflation history appears as a preponderant factor.
Navigating Trade-Offs between Price and Financial Stability in Times of High Inflation
April 11, 2025-Summary
Trade-offs between price and financial stability can occur when inflation is above target and financial stress is rising. Use of central bank liquidity tools and other financial stability policies may, under some circumstances, allow central banks to maintain their inflation fighting stance, while addressing financial stress. However, challenges in deploying these tools and specific country characteristics may hinder central banks’ ability to achieve both price and financial stability.
IMF Working Papers-The Global Impact of AI: Mind the Gap
April 11, 2025-Summary
This paper examines the uneven global impact of AI, highlighting how its effects will be a function of (i) countries' sectoral exposure to AI, (ii) their preparedness to integrate these technologies into their economies, and (iii) their access to essential data and technologies.
