changing monetary regimes. A fundamental macroeconomic policy trilemma has forced policy-makers to trade off conflicting goals … widespread political support either for an exchange rate subordinated monetary policy regime (e.g. the gold standard), or for a … monetary regime geared mainly towards domestic objectives at the expense of exchange rate stability (e.g. the recent float …

This paper attempts to provide some answers to a number of related questions. Has the European Monetary System reduced … (real or nominal, bilateral or effective) exchange rate volatility? If so, has this been at the expense of increased … interest rate volatility? How important have capital controls been for the operation of the EMS? Has the Exchange Rate …

price and output setters, so that agents will be more likely to treat shocks as nominal when the variability of nominal GNP …, nominal shocks will have smaller real effects. …

A gravity model is used to assess the separate effects of exchange rate volatility and currency unions on international … exchange rate volatility, even after controlling for a host of features, including the endogenous nature of the exchange rate …

. Theory consistent with dollar appreciation in the crisis suggests that their impact should be greater for countries that have …

This paper surveys the evidence on the effectiveness of monetary transmission in developing countries. We summarize the … arguments for expecting the bank lending channel to be the dominant means of monetary transmission in such countries, and … assess monetary policy effectiveness, both in developing countries as well as in industrial and emerging economies …

Openness per se requires optimal monetary policy to deviate from the canonical closed-economy principle of domestic … policymaker to deviate from strict domestic price stability. With both consumption and production openness variations in the world … price of food and in the world price of imported oil act as exogenous cost-push factors. …