IMF Working Papers

Implementation of Monetary Policy in Ems Countries Participating in the Exchange Rate Mechanism

By Michel Galy

October 1, 1992

Preview Citation

Format: Chicago

Michel Galy. Implementation of Monetary Policy in Ems Countries Participating in the Exchange Rate Mechanism, (USA: International Monetary Fund, 1992) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper investigates the issue of monetary interdependence among members of the European Monetary System over the period 1979–91 and the leadership role attributed to the German central bank in the process of monetary integration, and looks for possible changes in central banks’ behaviors. Econometric evidence supports somewhat the German leadership role but suggests also the development of an increased interdependence between French and German monetary policies after 1981–82; meanwhile, the Italian and more recently the Spanish central banks appear to have preserved a more significant measure of monetary autonomy.

Subject: Balance of payments, Banking, Capital controls, Central banks, Currencies, Exchange rates, Foreign exchange, Inflation, International reserves, Money, Prices

Keywords: Capital controls, Currencies, Deutsche mark, ERM country, ERM interest rate, Exchange rates, German interest rate, Inflation, Interest rate, International reserves, Reaction function, WP

Publication Details

  • Pages:

    26

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1992/087

  • Stock No:

    WPIEA0871992

  • ISBN:

    9781451850932

  • ISSN:

    1018-5941

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