Dominican Republic faces monetary policy trade-off – IMF paper

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A paper published by the International Monetary Fund examines the policy choices faced by the Central Bank of the Dominican Republic.

In the paper, Olga Bespalova and Marina Rousset use the IMF’s “growth-at-risk” model to examine how macro-financial conditions affected GDP in the Dominican Republic from 1996–2018.

They say that the financial system is healthy by international comparison. But they warn that the central bank faces a trade-off between the short- and medium-term effects of

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