Since 2014
Imported inflation and monetary policy
PSL Quarterly Review
View Archive Info| Field | Value | |
| Title |
Imported inflation and monetary policy
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| Creator |
SCOTT, I.O. Jr.
SCHMIDT, W.E. |
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| Subject |
—
Monetary policy, inflation, fixed exchange rates, balance of payments surplus, capital movements E31, E42, E52, F32 |
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| Description |
The present paper examines the thesis that monetary policy cannot be used as a weapon against domestic inflation in a surplus country under a regime of fixed exchange rates. The conditions under which the effective execution of domestic monetary policy is hampered by a balance-of-payments surplus are thus examined. The authors restrict their analysis to the case of a European country that is subjected to inflationary pressures because of a capital inflow from the United States. Two kinds of constraints are alleged to hinder the use of monetary policy, internal and external, both of which are considered in turn. The authors find that under certain conditions neither internal nor external constraints vitiate effective monetary action. Moreover, it is argued that the freedom of capital movements in a fixed exchange rate system necessarily eliminates the possibility of connecting national monetary policies.
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| Publisher |
Economia civile
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| Contributor |
—
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| Date |
2014-02-24
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://annalidibotanica.uniroma1.it/index.php/PSLQuarterlyReview/article/view/11686
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| Source |
PSL Quarterly Review; Vol 17, No 71 (1964)
PSL Quarterly Review; Vol 17, No 71 (1964) 2037-3643 ISSN 2037-3635 |
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| Language |
eng
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| Relation |
http://annalidibotanica.uniroma1.it/index.php/PSLQuarterlyReview/article/view/11686/11543
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| Rights |
Copyright (c) 2016 I.O. Jr. SCOTT, W.E. SCHMIDT
http://creativecommons.org/licenses/by-nc-nd/4.0 |
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