Effects of U.S. Monetary Restraint on the DM-$ Exchange Rate and the German Economy

Jacques R. Artus

No 926, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper assesses the quantitative effects of a shift to monetary restraint in the United States on the DM-$ exchange rate and the German economy. The results indicate that such effects are large. If Germany keeps its money growth unchanged, it will tend to experience a sharp and sustained depreciation of the deutsche mark and a significant increase in inflation and in unemployment. If it adopts an equivalent policy of monetary restraint, it will tend to benefit from a marked decline in inflation, but the cost in terms of lost output is extremely large.

Date: 1982-07
Note: ITI IFM
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published as Artus, Jacques R. "Effects of U.S. Monetary Restraint on the DM-$ Exchange Rate and the Germany Economy." Exchange Rate Theory and Practice, ed. by John F. O. Bilson and Richard C. Marston. Chicago UCP. (1984).

Downloads: (external link)
http://www.nber.org/papers/w0926.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:nbr:nberwo:0926

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w0926

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().