Monetary and Exchange Rate Policy

1. Front Matter

   Pages i-xv

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2. The Choice of Currency in the Foreign Trade of Italy

   • Giorgio Basevi, Daniela Cocchi, Pier Luigi Lischi

   Pages 1-48

3. Factors Affecting French Monetary Policy

   • Florin Aftalion

   Pages 49-68

4. The Political Uses of Monetary Targets

   • John T. Woolley

   Pages 69-98

5. Exchange Rate Intervention and Imperfect Capital Mobility

   • Donald V. Coes

   Pages 99-135

6. Central Bank Exchange Rate Policy

   • Donald R. Hodgman, Robert W. Resek

   Pages 136-165

7. Policy Makers in Crisis: A Study of Two Devaluations

   • Forrest H. Capie, Geoffrey E. Wood

   Pages 166-192

8. The DM/Dollar Rate and the Exchange Market Intervention Policy of the Deutsche Bundesbank 1974–1984

   • Manfred Willms

   Pages 193-219

9. Back Matter

   Pages 221-223

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Monetary and exchange rate policies of national monetary authorities, together with certain of their consequences, provide the common theme for the studies in this volume. Four of the contributions are mainly concerned with exchange rate policy-decisions to alter fixed parities, intervention by central banks in foreign exchange markets, and the determinants of exchange rates including intervention and the degree of capital mobility. Two studies are oriented to aspects of domestic monetary policy, one examining policy reactions of French monetary authorities, the other concerning the choice of monetary aggregate target as a politically motivated strategy to assign responsibility for macroeconomic outcomes and thus influence the behaviour of decision makers in the macroeconomic policy making process. One contribution investigates the factors that influence the choice of currency in foreign trade, an important factor in determining the importance for exchange market stability of capital movements, and perhaps official intervention. The studies present significant theoretical and empirical results as well as the institutional material.

• economic policy
• macroeconomics
• monetary policy

• University of Illinois, USA

  Donald R. Hodgman

• Centre for Banking and International Finance, The City University Business School, UK

  Geoffrey E. Wood

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