From monetary to exchange rate targets

Authors

  • M.J. ARTIS

DOI:

https://doi.org/10.13133/2037-3643/10738

Keywords:

EMS, prices, European integration, exchange rate target, monetary target

Abstract

This paper was presented at the Fourth International Seminar on European Economic and Monetary Union, held in Copenhagen in March of 1981. The author takes up the theoretical issues in the framework of both static and dynamic analysis. He argues, on the basis of the criterion of minimising the variance of prices around their target value, that an exchange-rate target outperforms a monetary target under most conceivable types of disturbances in a static analysis.

 

JEL: E24, F36

References

ARTIS, M.]. and CURRIE, D. A. (1981a) "Monetury aod exchange rate targets" in (eds.) A. Courakis

and R. L. Harrington, Monetarism: Tradillom, Theory and PoLicy, Macmillan.

ARns, M. J. and CURlUE, D. A. (1981b) "Monerary targets aod the exchange rate: a case for

conditionalizing", Oxford Economie Papers, (forthcoming).

ALLEN, P. R (1980) "Increased wage or productivity differentials in a monetary unioo", paper

presented for the Conference on European Monetary Union, Salford University, September.

BUITER, W. (1979) "Unemployment-inflation trade-offs with rational expectations in an open

economy") Journal o/Economie Dynamics and Control, VaL I, pp. 117-141.

BUlTER, W. and M1LLER, M. (1981) "Monetary policy aod international competitiveness" in (eds.)

A. Courakis and R. L. Harrington, Monetarism: Traditions, Theory and Policy, Macmillan.

DoRNBUSCH, R (1976) "Exchange ratedynamics",]oumal o/PoliticaIEconomy, pp. 1161-1176.

DoRNBUSCH, R. (1980) Opro Economy Macroeconomics, Basic Books, New York.

LIVIATAN, N. (1980) "Anti-inflationary monetary policy and the capital import tax", Warwick

EconomicResearchPaper, No. 171.

VAUBEL, R. (1980) "International shifts in the demand for money, their effects on exchange rates

and price levels and their implications for the pre-announcement of monetary expansion",

Weltwirtschaftliches Archz'v, pp. 1-14.

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Published

2013-10-11

How to Cite

ARTIS, M. (2013). From monetary to exchange rate targets. PSL Quarterly Review, 34(138). https://doi.org/10.13133/2037-3643/10738

Issue

Vol. 34 No. 138 (1981)

Section

Editorial

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