Implementation of Monetary Policy in Ems Countries Participating in the Exchange Rate Mechanism
October 1, 1992
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Summary
This paper investigates the issue of monetary interdependence among members of the European Monetary System over the period 1979–91 and the leadership role attributed to the German central bank in the process of monetary integration, and looks for possible changes in central banks’ behaviors. Econometric evidence supports somewhat the German leadership role but suggests also the development of an increased interdependence between French and German monetary policies after 1981–82; meanwhile, the Italian and more recently the Spanish central banks appear to have preserved a more significant measure of monetary autonomy.
Subject: Balance of payments, Banking, Capital controls, Central banks, Currencies, Exchange rates, Foreign exchange, Inflation, International reserves, Money, Prices
Keywords: Capital controls, Currencies, deutsche mark, ERM country, ERM interest rate, Exchange rates, German interest rate, Inflation, interest rate, International reserves, reaction function, WP
Pages:
26
Volume:
1992
DOI:
Issue:
087
Series:
Working Paper No. 1992/087
Stock No:
WPIEA0871992
ISBN:
9781451850932
ISSN:
1018-5941
