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

IMF Working Papers, October 1, 1992

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

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Bibliographic details

Authors: Michel Galy
Published: October 1, 1992
Series: IMF Working Papers
DOI: https://doi.org/10.5089/9781451850932.001

Research scope and objective

Investigates monetary interdependence among members of the European Monetary System over the period 1979–91.
Examines the leadership role attributed to the German central bank in the process of monetary integration.
Looks for possible changes in central banks’ behaviors during the sample period.

Key findings and econometric evidence

Econometric evidence supports somewhat the German leadership role.
Evidence suggests the development of an increased interdependence between French and German monetary policies after 1981–82.
The Italian central bank appears to have preserved a more significant measure of monetary autonomy.
The Spanish central bank more recently (relative to the sample) also appears to have preserved a more significant measure of monetary autonomy.

Publication and metadata

Author: Michel Galy
Publication date: October 1, 1992
Series: Working Paper No. 1992/087
Issue: 087
Volume: 1992
Pages: 26
DOI: https://doi.org/10.5089/9781451850932.001
Stock No: WPIEA0871992
ISBN: 9781451850932
ISSN: 1018-5941

Subjects and keywords

Subjects: 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

Implementation of Monetary Policy in Ems Countries Participating in the Exchange Rate Mechanism — Michel Galy, IMF Working Paper No. 1992/087