00000nam 2200000zi 4500 9.886404 CaOODSP 20221107171416 m o d f cr |n||||||||| 200427t20202020oncd ob f000 0 eng d CaOODSP eng rda CaOODSP eng fre n-cn--- FB3-5/2020-13E-PDF Ghironi, Fabio, author. Interest rate uncertainty as a policy tool / by Fabio Ghironi and Galip Kemal Ozhan. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (iv, 79 pages) : colour charts. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-13 Cover title. Includes bibliographical references. "We study a novel policy tool—interest rate uncertainty—that can be used to discourage inefficient capital inflows and to adjust the composition of external account between short-term securities and foreign direct investment (FDI). We identify the trade-offs faced in navigating between external balance and price stability. The interest rate uncertainty policy discourages short-term inflows mainly through portfolio risk and precautionary saving channels. A markup channel generates net FDI inflows under imperfect exchange rate pass-through. We further investigate new channels under different assumptions about the irreversibility of FDI, the currency of export invoicing, risk aversion of outside agents, and effective lower bound in the rest of the world. Under every scenario, uncertainty policy is inflationary"--Abstract. Includes abstract in French. Interest rates Econometric models. Uncertainty Econometric models. Investments, Foreign Econometric models. Taux d'intérêt Modèles économétriques. Incertitude Modèles économétriques. Investissements étrangers Modèles économétriques. Monetary policy Econometric models. Politique monétaire Modèles économétriques. Bank of Canada. Staff working paper (Bank of Canada) 2020-13. (CaOODSP)9.806221 PDF 13.93 MB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-13-eng.pdf