On the Link between Exchange-Rate Regimes and Monetary-Policy Autonomy: The European Experience

Jens Forssbæck and Lars Oxelheim

No 637, Working Paper Series from Research Institute of Industrial Economics

Abstract: We investigate monetary-policy autonomy under different exchange-rate regimes in small, open European economies during the 1980s and 1990s. We find no systematic link between ex post monetary-policy autonomy and exchange rate regimes. This result is enforced for countries/periods with alternative nominal targets. 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

Keywords: Exchange Rate Regimes; Monetary Policy Autonomy; Capital Mobility (search for similar items in EconPapers)
JEL-codes: E42 E52 F41 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2005-03-15
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in The World Economy, 2006, pages 341-368.

Downloads: (external link)
https://www.ifn.se/Wfiles/wp/WP637.pdf (application/pdf)

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:hhs:iuiwop:0637

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().