Volume 9, Number 3 September 2013 oue9 ubr3September 2013 Volume 9, Number 3 BANKING OF CENTRAL JOURNAL INTERNATIONAL

INTERNATIONAL JOURNAL OF CENTRAL BANKING

Fiscal Shocks and the Real Exchange Rate Agustín S. Bénétrix and Philip R. Lane

Granularity Adjustment for Regulatory Capital Assessment Michael B. Gordy and Eva Lütkebohmert

(Un)anticipated Monetary Policy in a DSGE Model with a Shadow Banking System Fabio Verona, Manuel M. F. Martins, and Inês Drumond

The Impact of Monetary Policy Shocks on Commodity Prices Alessio Anzuini, Marco J. Lombardi, and Patrizio Pagano

Policymakers’ Interest Rate Preferences: Recent Evidence for Three Monetary Policy Committees Alexander Jung

Capital Regulation, Monetary Policy, and Financial Stability Pierre-Richard Agénor, Koray Alper, and Luiz Pereira da Silva International Journal of Central Banking

Volume 9, Number 3 September 2013

Fiscal Shocks and the Real Exchange Rate 1 Agust´ın S. B´en´etrix and Philip R. Lane

Granularity Adjustment for Regulatory Capital Assessment 33 Michael B. Gordy and Eva L¨utkebohmert

(Un)anticipated Monetary Policy in a DSGE Model with a 73 Shadow Banking System Fabio Verona, Manuel M. F. Martins, and Inˆes Drumond

The Impact of Monetary Policy Shocks on Commodity 119 Prices Alessio Anzuini, Marco J. Lombardi, and Patrizio Pagano

Policymakers’ Interest Rate Preferences: Recent Evidence 145 for Three Monetary Policy Committees Alexander Jung

Capital Regulation, Monetary Policy, and Financial Stability 193 Pierre-Richard Ag´enor, Koray Alper, and Luiz Pereira da Silva

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ISSN: 1815-4654 International Journal of Central Banking

Board of Directors Chairman John Murray, Bank of Canada

Board Members Q. Farooq Akram, Norges Bank Ana Christina Leal, Bank of Portugal Abdulrahman Al-Hamidy, Saudi Arabian Choy Keen Meng, Monetary Authority of Singapore Monetary Agency Loretta J. Mester, Federal Reserve Bank David E. Altig, Federal Reserve Bank of Atlanta of Philadelphia Carlos Hamilton Vasconcelos Araujo, Central Bank John McDermott, Reserve Bank of New Zealand of Brazil Maurice McGuire, Central Bank of Ireland Jan Marc Berk, The Nederlandsche Bank Deepak Mohanty, Reserve Bank of India Claudio Borio, Bank for International Settlements Vyacheslav Morgunov, Central Bank of Mohamed Tahar Bouhouche, Bank of Algeria Russian Federation Laurent Clerc, Bank of France Edward Offenbacher, Bank of Israel Francisco G. Dakila Jr., Central Bank of Fabio Panetta, Bank of Italy the Philippines Th´orarinn G. P´etursson, Central Bank of Iceland Spencer Dale, Bank of England Cristian Popa, National Bank of Romania Jean-Pierre Danthine, Swiss National Bank Ivan Ribnikar, Bank of Slovenia William English, Federal Reserve Board Harvey Rosenblum, Federal Reserve Bank of Dallas Jiang Feng, People’s Bank of China Mark Schweitzer, Federal Reserve Bank Manuel Ramos Francia, Bank of Mexico of Cleveland Jeffrey C. Fuhrer, Federal Reserve Bank of Boston Frank Smets, European Central Bank Hiroshi Fujiki, Bank of Japan Jan Smets, National Bank of Belgium Andr´es Gonz´alez G´omez, Banco de la Rep´ublica Kateˇrina Sm´ˇ ıdkov´a, Czech National Bank Niels Lyngg˚ard Hansen, Danmarks Nationalbank Daniel Sullivan, Federal Reserve Bank of Chicago Dong He, Hong Kong Monetary Authority Altin Tanku, Bank of Albania Luis Oscar´ Herrera, Central Bank of Chile Juha Tarkka, Bank of Finland Heinz Herrmann, Deutsche Bundesbank George Tavlas, Bank of Greece Tor Jacobson, Sveriges Riksbank Joseph Tracy, Federal Reserve Bank of New York Juan F. Jimeno, Bank of Spain Dobieslaw Tymoczko, National Bank of Poland George A. Kahn, Federal Reserve Bank of Kansas City Christopher Waller, Federal Reserve Bank Ali Hakan Kara, Central Bank of Turkey of St. Louis Christopher Kent, Reserve Bank of Australia John Weinberg, Federal Reserve Bank of Richmond Jun Il Kim, Bank of Korea Kei-Mu Yi, Federal Reserve Bank of Minneapolis

Editorial Board Managing Editor John C. Williams Federal Reserve Bank of San Francisco

Co-editors Pierpaolo Benigno Harrison Hong Rafael Repullo LUISS Guido Carli Princeton University CEMFI Michael B. Devereux Loretta Mester Stephanie Schmitt-Grohe University of British Columbia Federal Reserve Bank Columbia University of Philadelphia

Associate Editors Patrick Bolton Jordi Gal´ı Eli M. Remolona University of Columbia Centre de Recerca en Economia Bank for International Michael D. Bordo Internacional (CREI) Settlements Rutgers University Marvin Goodfriend H´el`ene Rey Mark Carey Carnegie Mellon University London Business School Federal Reserve Board Michael B. Gordy Jean-Charles Rochet Pierre Collin-Dufresne Federal Reserve Board University of Toulouse University of Columbia Luigi Guiso Andrew K. Rose Guy Debelle European University Institute University of California, Reserve Bank of Australia Andrew G. Haldane Berkeley Michael B. Devereux Bank of England Klaus Schmidt-Hebbel University of British Columbia Takatoshi Ito Organisation for Economic University of Tokyo Co-operation and Development Douglas W. Diamond (OECD) University of Chicago Graduate David Lando School of Business Copenhagen Business School Lars E.O. Svensson Sveriges Riksbank Francis Diebold Philip Lane University of Pennsylvania Trinity College Dublin J¨urgen von Hagen University of Bonn Michael Dotsey Francesco Lippi Federal Reserve Bank of University of Sassari Ernst-Ludwig von Thadden University of Mannheim Philadelphia Carmen M. Reinhart Darrell Duffie University of Maryland Tsutomu Watanabe Stanford University University of Tokyo

Advisory Board Franklin Allen Hyun Shin Michael Woodford The Wharton School of the Princeton University Columbia University University of Pennsylvania Kazuo Ueda John Taylor Charles Goodhart University of Tokyo Stanford University London School of Economics