Cover IMF Working Papers
Current Issues in the Design and Conduct of Monetary Policy
Author: Mr. Mohsin S. Khan
Series:
IMF Working Papers
Volume/Issue:
Volume 2003: Issue 056
Language:
English
Publication Date:
01 Mar 2003
DOI:
https://doi.org/10.5089/9781451847727.001
ISBN:
9781451847727
ISSN:
1018-5941
Pages:
18
Keywords:
WP; government; monetary policy; central bank; country; rules versus discretion; inflation targeting; inflation targeting framework; inflation-targeting strategy; inflation targeting approach; inflation targeting country; monetary policy objective; monetary policy target; managed exchange rate regime; Inflation; Exchange rates; Monetary aggregates; Exchange rate arrangements; Africa; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Movements in global capital during the late 1990s and the greater emphasis on price stability led many countries to abandon fixed exchange rate regimes and to design institutions and monetary policies to achieve credibility in the goal of lowering inflation. Such recent developments have brought to the forefront the idea that freely mobile capital, independent monetary policy, and fixed exchange rates form an "impossible trinity." It is possible to have two of these policies, but not all three. Inflation-targeting regimes being adopted by many countries provide a way of resolving this dilemma.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund