6533b85bfe1ef96bd12bb35f
RESEARCH PRODUCT
Do Exchange-Rate Regimes Matter for Monetary-Policy Autonomy? The Experiences of 11 Small, Open European Economies in the 1980s and 1990s
Lars OxelheimLars OxelheimLars OxelheimJens Forssbæcksubject
Systematic differenceExchange rateEconomymedia_common.quotation_subjectMonetary policyEconomicsMonetary economicsInternational economicsAutonomyTerm (time)media_commondescription
We investigate monetary-policy autonomy under different exchange-rate regimes in small, open European economies during the 1980s and 1990s. We find no systematic difference in the degree of nominal monetary-policy autonomy enjoyed by those countries that pursue flexible exchange-rate regimes as compared to those that have kept their exchange rates fixed. Our interpretation of the results is that over the medium and long term following an 'independent' target for monetary policy, which does not deviate much from the targets of those countries to which one is closely financially integrated, is as constraining as locking the exchange rate to some particular level.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2003-01-01 | SSRN Electronic Journal |