Current Issues in the Design and Conduct of Monetary Policy
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Summary:
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.
Series:
Working Paper No. 2003/056
Subject:
Banking Exchange rate arrangements Exchange rates Foreign exchange Inflation Inflation targeting Monetary aggregates Monetary policy Money Prices
English
Publication Date:
March 1, 2003
ISBN/ISSN:
9781451847727/1018-5941
Stock No:
WPIEA0562003
Pages:
18
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