This paper examines the P-star model of the link between M2 and prices recently developed by Haliman, Porter and Small (1989, 1990) (HPS). It also develops an Ml-based variant of the P-star model. The analysis points out and corrects, for the most part, several major shortcomings in the P-star...

This paper describes the evolution of Austrian exchange rate and monetary policy as an example of the benefits of policy coordination and credibility. This policy proved the performance of the Central Bank in achieving its twin objective of stabilizing the internal and external value of the...

During the 1980s, policy advisers were successful in promoting the view that movements in the value of the dollar have an inverse relationship to U.S. international competitiveness. This article explains their hypothesis, as well as the counterargument that exchange rates positively reflect a...