Last edited by Brazuru
Monday, May 4, 2020 | History

6 edition of Monetary independence under flexible exchange rates found in the catalog.

Monetary independence under flexible exchange rates

by Harvey A. Poniachek

  • 202 Want to read
  • 40 Currently reading

Published by Lexington Books in Lexington, Mass .
Written in English

    Subjects:
  • Foreign exchange rates.,
  • Money.,
  • International finance.

  • Edition Notes

    StatementHarvey A. Poniachek.
    Classifications
    LC ClassificationsHG3821 .P58
    The Physical Object
    Paginationviii, 215 p. ;
    Number of Pages215
    ID Numbers
    Open LibraryOL4731401M
    ISBN 100669027286
    LC Control Number78019724

    “Agenor, Pierre-Richard. Monetary Policy under Flexible Exchange Rates: An Introduction to Inflation Targeting. Policy Research Working Paper;No. The relationship between exchange rate regime and monetary policy independence has been tested in a few papers. For a large sample of industrial and developing countries, Frankel et al () show that domestic short-term interest rates, even in countries with floating exchange rates, are linked with international interest rates in the long run.

    Request PDF | Monetary policy independence under pegged exchange rate regime: A New-Keynesian-Model bird’s-eye view of the Macroeconomic Trilemma In Morocco | What does the macroeconomic. The Mundell-Fleming trilemma Two out of three ain’t bad. A fixed exchange rate, monetary autonomy and the free flow of capital are incompatible, according to the last in our series of big.

    Under a flexible exchange rate regime, governments can retain monetary policy independence because the external balance will be achieved by the exchange rate adjustments Suppose tat Britain pegs the pound to gold at six pounds per ounce, whereas the exchange rate between pounds and U.S. dollar is $5-per 1pound. Economic Policy # 2. Monetary Policy: If the central bank increases M, the LM N curve shifts to the right from LM N to LM N as shown in Fig. As a result, exchange rate falls but Y rises. The Monetary Transmission Mechanism: In an open economy, an increase in M .


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Monetary independence under flexible exchange rates by Harvey A. Poniachek Download PDF EPUB FB2

Monetary Policy Independence under Flexible Exchange Rates: An Illusion. Sebastian Edwards. NBER Working Paper No. Issued in January NBER Program(s):International Finance and Macroeconomics I analyze whether countries with flexible exchange rates are able to pursue an independent monetary policy, as suggested by traditional by: I analyse whether countries with flexible exchange rates are able to pursue an independent monetary policy, as suggested by traditional theory.

I use data for three Latin American countries with flexible exchange rates, inflation targeting and capital mobility – Chile, Colombia and Mexico – to investigate the extent to which Federal Reserve Cited by: Under flexible rates, however, and local and international rates may deviate from world interest rates.

Consider a situation where there is a tightening of monetary policy in the foreign country that results in a higher.

As noted, under pegged exchange rates this would be translated in a one-to-one increase in. December Inflation targeting is a flexible policy framework that allows a country’s central bank to exercise some degree of discretion without putting in jeopardy its main objective of maintaining stable prices.

In the past few years a number of central banks have adopted inflation targeting for monetary. Downloadable. I analyze whether countries with flexible exchange rates are able to pursue an independent monetary policy, as suggested by traditional theory.

I use data for three Latin American countries with flexible exchange rates, inflation targeting, and capital mobility – Chile, Colombia and Mexico – to investigate the extent to which Federal Reserve actions are translated into local.

I analyse whether countries with flexible exchange rates are able to pursue an independent monetary policy, as suggested by traditional theory. I use data for three Latin American countries with flexible exchange rates, inflation targeting and capital mobility – Chile, Colombia and Mexico – to investigate the extent to which Federal Reserve actions are translated into local central banks.

Show abstract The latter factor, exchange rate stability, is hypothesised that a flexible exchange rate can maintain domestic interest rate independence. A greater flexibility in the exchange rate. Monetary Policy Independence under Flexible Exchange Rates: An Illusion.

I analyse whether countries with flexible exchange rates are able to pursue an independent monetary policy, as suggested by traditional theory.

The Impacts of Financial Integration on the Linkages Between Monetary Independence and Foreign Exchange Reserves Cited by: Monetary Policy Independence Under Flexible Exchange Rates: An Illusion.

The World Economy, Vol. 38, Issue 5, pp.Number of pages: 15 Posted: 14 May Cited by: monetary policy can be independent only if exchange rates are flexible: that is, the more flexible the exchange rate, the larger t he scope for a central bank to set its policy rate independently from those prevailing abroad.

And now it’s 20 years past that, and it’s followed a policy of noninflation during that period under sometimes difficult cir. Copyright © by the Board of Trustees of the Leland Stanford Junior University.

All rights reserved. Monetary Policy Independence under Flexible Exchange Rates Monetary Policy under Flexible Exchange Rates: An Introduction to Inflation Targeting geting over alternative monetary policy frameworks were exchange rate crises and money demand instability.

facto independence for the central bank, and the lack of an anti-inflationary. Additional Physical Format: Online version: Poniachek, Harvey A. Monetary independence under flexible exchange rates.

Lexington, Mass.: Lexington Books, © Changes may occur before publication. Monetary Policy Independence under Flexible Exchange Rates 7. by 50 basis points; and on two occasions it was reduced by 75 basis points (both of them in early the week of January 25th and the week of March 21st).

Monetary Policy Independence under Flexible Exchange Rates: An Illusion. Sebastian Edwards. (Banxico), for useful conversations on “monetary policy contagion.” The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.

Recent Books Earlier Books (by decade. A monetary union (also known as currency union) is an exchange rate regime where two or more countries use the same currency.

However, in some special cases there may also be a monetary union even if there is more than a single currency, if the currencies have a fixed exchange rate. In L. Frank Baum's classic children's book, The Wonderful Wizard of Oz, the name "oz" is a reference to. an ounce (oz.) of gold.

Under the gold standard era of Advocates of flexible exchange rates claim that under flexible exchange rates, a currency. cally open-economy considerations begins with the introduction of the exchange rate.

In the monetary approach, the exchange rate is determined directly by the relative price level via purchasing power parity (PPP). We use () and () to write the crude monetary approach model to exchange rate determination as ().

S= Q H=H L(i;Y)=L(i;Y File Size: KB. Monetary policy under flexible exchange rates - an introduction to inflation targeting (English) Abstract. In the past few years, a number of central banks have adopted inflation targeting for monetary Cited by: Corrections.

All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:vyipSee general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title. A fixed exchange rate, also referred to as pegged exchanged rate, is an exchange rate regime under which the currency of a country is fixed, either to another country’s currency, a basket of currencies or another measure of value, such as gold.

A country’s monetary authority determines the exchange rate and commits itself to buy or sell the domestic currency at that price.The flexible exchange rate system has these advantages: Flexible exchange rates as automatic stabilizers: The necessity of maintaining internal and external balance under a metallic standard is based on the fact that a metallic standard leads to a fixed exchange rate the relative price of currencies is fixed and a country’s output, employment, and current account performance and.Expansionary Monetary Policy.

Suppose the United States fixes its exchange rate to the British pound at the rate Ē $/£.This is indicated in Figure "Expansionary Monetary Policy with a Fixed Exchange Rate" as a horizontal line drawn at Ē $/£.Suppose also that the economy is originally at a superequilibrium shown as point F with original gross national product (GNP) level Y 1.