IV Suggested Coordination Rules for Monetary Policy
Author:
International Monetary Fund
Search for other papers by International Monetary Fund in
Current site
Google Scholar Close
Language:
English
Print Publication Date:
15 Sep 1988
Keywords:
OP; EMS; economy; balance of payments adjustment mechanism; policy error; EEC currency; monetary policy coordination; EMS scheme; Exchange rates; Monetary base; Inflation; Currencies; Monetary unions; Europe; balance of payments adjustment process; deutsche mark; targeted EMS inflation rate; high-inflation country; EMS aggregate; Demand for money

Abstract

This section will investigate the implications for the EMS of the adoption of “rules” for the coordination of monetary policies to facilitate balance of payments adjustment and to contribute to the objective of reducing inflation and/or keeping it at a low level. Four possible rules drawn from the literature will be examined: an EMS-wide money supply target; a target expressed in terms of expansion of the domestic component of the monetary base in each country, with an agreement not to sterilize international reserve flows among members; nominal income targets for each member country; and an appropriate inflation target for the area as a whole.

Within Same Series

Other IMF Content

Other Publishers Content

  • Collapse
  • Expand
Cover Policy Coordination in the European Monetary System
Policy Coordination in the European Monetary System
Occa Paper 61
ISBN:
9781557750280
ISSN:
0251-6365
Publication Date:
15 Sep 1988
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557750280.084
Pages:
100