Monetary Policy in the European Monetary System: A Critical Appraisal

ISBN-13: 9783642801020 / Angielski / Miękka / 2011 / 147 str.

Joao Loureiro

Opis

Monetary Policy in the European Monetary Systems (EMS) provides the reader with a critical assessment of the EMS operation, focusing on key issues like intervention in money and foreign exchange markets and credibility of EMS exchange rate bands. The book also reopens the discussion on the "EMS discipline-credibility hypothesis" and the notion of "New EMS," testing both with an original methodology. The conflict between internal and external objectives is made clear and the empirical results show the choices made by the individual countries and the resulting implications. The book is written with an empirical orientation based on a unifying data description framework.

Spis treści

1 Introduction.- 2 The origins, design and working of the European Monetary System.- 2.1. The origins of the EMS.- 2.2. The design of the EMS.- 2.3. The working of the EMS.- 3 “Leaning against the wind” in the EMS: Did it work? An analysis of the period from 1979 to 1988.- 3.1. Introduction.- 3.2. An exchange market pressure model of the EMS.- 3.3. Assessing foreign exchange intervention: Methodology.- 3.4. Data.- 3.5. Results.- 3.6. Summary and conclusions.- Appendices.- 4 “Leaning against the wind” through interest rate management: The EMS in the period from 1979 to 1988.- 4.1. Introduction.- 4.2. Interest rate management and foreign exchange market effects.- 4.3. Methodology and data.- 4.4. Results and conclusions.- 5 Monetary autonomy in the EMS.- 5.1. Introduction.- 5.2. Assessing monetary autonomy.- 5.3. Data.- 5.4. Results.- 5.4.1. The period of realignments, 1979–1988.- 5.4.2. The “New EMS”, 1987–1992.- 5.5. Summary and conclusions.- 6 The discipline hypothesis: What role for the EMS?.- 6.1. Introduction.- 6.2. The “tying-one’s-hands” model of discipline.- 6.3. Some theoretical problems with the EMS discipline hypothesis.- 6.3.1. Is the EMS time-consistent?.- 6.3.2. The alternatives to exchange rate pegging.- 6.3.3. The role of foreign exchange controls.- 6.3.4. How do we explain German participation in the EMS?.- 6.4. The EMS discipline/credibility hypotheses: Empirical evidence.- 6.5. The record of the unemployment/inflation trade-off.- 6.6. The EMS as a device for self-imposed discipline.- 6.6.1. Methodology.- 6.6.2. Data.- 6.6.3. Results.- 6.7. Summary and conclusions.- Appendices.- 7 In search of a credible EMS.- 7.1. Introduction.- 7.2. Svensson’s “simplest test of target zone credibility”.- 7.2.1. Data.- 7.2.2. Results.- 7.3. Improvement of EMS exchange rate credibility.- 7.3.1. Credibility and forward market excess returns.- 7.3.2. Methodology.- 7.3.3. Data.- 7.3.4. Results.- 7.4. Summary and conclusions.- 8 Summary and conclusions.- References.- List of figures.- List of tables.