The Exchange Rate as a Monetary Indicator: the experience of the 1980s

Paul Temperton

Chapter 8 in UK Monetary Policy, 1991, pp 115-125 from Palgrave Macmillan

Abstract: Abstract The authorities have consistently stated throughout the period of the Medium Term Financial Strategy (MTFS) that they have no target level for the exchange rate. It has, however, always been one of the key factors taken into account in me assessment of monetary conditions and took on increasing importance during the 1980s. As early as 1980/81, the high and rising level of the exchange rate was taken into account when the authorities judged that monetary conditions were tight during mat period, despite a substantial overshoot of the target range for broad money. Mainly due to the strength of the exchange rate, minimum lending rate was cut to 16% in July 1980, to 14% in November, and to 12% in March 1981: throughout the period £M3 grew above its target range.

Keywords: Exchange Rate; Interest Rate; Fiscal Policy; Target Range; Monetary Aggregate (search for similar items in EconPapers)
Date: 1991
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-11836-6_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349118366

DOI: 10.1007/978-1-349-11836-6_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().