haku: @author Viren, M. / yhteensä: 16
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| Tekijä: | Mayes, D.G. Viren, M. |
| Otsikko: | The exchange rate and monetary conditions in the Euro area |
| Lehti: | Weltwirtschaftliches Archiv
2000 : HEFT 2, VOL. 136:2, p. 199-231 |
| Asiasana: | European Monetary System Currency Exchange rates Monetary policy Europe |
| Vapaa asiasana: | EMU |
| Kieli: | eng |
| Tiivistelmä: | Using information from a variety of sources, this paper suggests that the exchange rate will play an important role in the transmission of the impact of monetary policy on the real economy and inflation in the euro area. As a first approximation it would be reasonable to assume that an increase in the real 90-day interest rate of 100 basis points would have the same effect on demand 2 yrs. later as a 3.5 per cent fall in the real euro exchange rate. This implies that the euro area will tend to behave like large open economy rather than a closed economy and hence that it would be helpful in informing monetary policy institutions to construct a Monetary Conditions Index (MCI). |
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