Monetary Targeting in Germany

Manfred J. M. Neumann

Chapter 7 in Towards More Effective Monetary Policy, 1997, pp 176-210 from Palgrave Macmillan

Abstract: Abstract Monetary targeting was considered an avant-garde experiment when the Deutsche Bundesbank introduced this concept in late 1974 after having been freed of the chains of the Bretton Woods system. Many central banks followed shortly afterward. Today, in contrast, monetary targeting is widely viewed as an outmoded procedure that has lost its pillar, a stable money demand function. For this reason, several countries, like Canada, New Zealand and the UK, have switched to the concept of direct inflation targeting, while other countries have reverted to pure discretion or continue pegging their currency to one of the key currencies or a currency basket. The Bundesbank, in contrast, holds on to its concept steadfastly and advertises monetary targeting as a suitable concept of policy formulation for the future European Central Bank.

Keywords: Monetary Policy; Central Bank; Real Exchange Rate; Money Demand; Target Rate (search for similar items in EconPapers)
Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (104)

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:978-1-349-25382-1_7

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349253821

DOI: 10.1007/978-1-349-25382-1_7

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 ().