Abstract
The purpose of this paper is to review in a non-technical way some of the more important new insights on the conduct and the efficiency of monetary policy in an internationally changing environment. The last decade has seen a thorough-going reworking of monetary theory for open economies incorporating in particular portfolio balance analysis in macro-economic policy models1. However, no attempt to write a comprehensive survey of the relevant literature is made. The paper instead focuses on a few key issues that have retained widespread attention by policy makers as well as in academic circles2.
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References
For a recent but rather dense survey of some of the more important results see D. W. Henderson, “Modeling the interdependence of national money and capital markets”, American Economic Review, Papers and Proceedings, Vol. 67, 1977, pp. 190–199.
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This presentation is slightly adapted from R. N. Cooper, “Monetary theory and policy in an open economy”, The Scandinavian Journal of Economics, Vol. 78, 1976, p. 148.
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M. Mussa, op.cit., pp. 241–247.
Ibidem, p. 246.
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Peeters, T. (1979). Problems of Monetary Policy in Open Economies. In: Wadsworth, J.E., de Juvigny, F.L. (eds) New Approaches in Monetary Policy. New Approaches in Monetary Policy, vol 4. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-9577-2_18
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DOI: https://doi.org/10.1007/978-94-009-9577-2_18
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