The aim of the paper is to analyse the disinflationary process in Hungary which took place in the second half of the 1990s. After the implementation of the so-called "Bokros" austerity package in early 1995, a crawling peg exchange rate regime has been adopted by the Hungarian authorities. We...

Earlier studies have reached a consensus that monetary policies generate more economic activities than fiscal policies in developing economies. This study has bridged the existing gaps in earlier studies by addressing the question of which of the instruments of macroeconomics is more effective...

I examine the transmission of expansionary U.S. monetary policy in case where developing countries -- including China -- peg their currencies to the dollar. I evaluate the value of the dollar peg as a fraction of consumption that households would be willing to pay for the dollar peg to remain as...

Bolivia has achieved noteworthy success over the past 15 years in raising incomes, reducing poverty, and maintaining macroeconomic stability by deploying commodity revenues to finance transfers, public investment, and state-led development, using an exchange rate peg as a policy anchor. However,...

There is a well-known set of empirical regularities that describe the experience of countries that peg their exchange rate as part of a macroeconomic adjustment program. Following the peg economies tend to experience an increase in GDP, a large expansion of production in the non-tradable sector,...

When the goals of internal and external macroeconomic equilibrium are in conflict, sterilized intervention in the foreign exchange market may provide an independent policy instrument through which the central bank can resolve its dilemma in the short run. This paper is concerned with the West...

In the 1970s the Federal Reserve began a policy of targeting monetary growth. Those who viewed this as a positive development felt that such a policy would allow the Fed to signal its intentions to be firm in its pursuit of an anti-inflationary agenda. Moreover, if the Fed could pursue its...