Active pegging, rational expectations and autonomy of monetary policy
Aurikko, Esko (10.09.1984)
Numero
5/84Julkaisija
Suomen Pankki
1984
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2023071290577Tiivistelmä
A simple stochastic model of an open economy is used to analyze the effects of exchange rate policies and variability in the money supply process on monetary autonomy. With deterministic exchange rate policies (active pegging), and assuming serially uncorrelated expectations monetary autonomy can be increased although not without limit.