The Issue of Monetary Independence

Abstract

One of the central issues under review has been the degree of monetary independence available to individual countries in a world of efficient international money markets. In fact there are two related issues to be considered: (1) the actual degree of monetary independence; and (2) whether monetary independence is in the final analysis a significant policy issue. If monetary independence does not confer on policy-makers an effective means of securing their policy objectives, the lack of independence is of only second-order importance.