IDEAS home Printed from https://ideas.repec.org/a/bla/ausecp/v26y1987i48p43-57.html
   My bibliography  Save this article

Exchange Rates, Policy Rules and Inflation

Author

Listed:
  • Pitchford, John David
  • Vousden, Neil J

Abstract

A variety of monetary policy rules have been suggested for use in the context of a floating exchange rate. This paper compares the effects of a constant money growth rate, "monetary targeting," "anti-inflation exchange-rate policy," and "leaning against the wind" in a small, open economy subject to foreign inflation. The effects of the various rules on the "stability" of the economy, their "inflation insulation" prop erties, and their capacity to result in a reduced inflation rate are derived and discussed. In the final section, these rules of thumb are related to an optimal rule. Copyright 1987 by Blackwell Publishers Ltd/University of Adelaide and Flinders University of South Australia

Suggested Citation

  • Pitchford, John David & Vousden, Neil J, 1987. "Exchange Rates, Policy Rules and Inflation," Australian Economic Papers, Wiley Blackwell, vol. 26(48), pages 43-57, June.
    • Handle: RePEc:bla:ausecp:v:26:y:1987:i:48:p:43-57
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard C.K. Burdekin, 1992. "Assessing the Impact of US Macroeconomic Policies and Inflation Rates on the Australian Economy," The Economic Record, The Economic Society of Australia, vol. 68(1), pages 16-30, March.
    2. John Pitchford, 1993. "The Exchange Rate and Macroeconomic Policy in Australia," RBA Annual Conference Volume (Discontinued), in: Adrian Blundell-Wignall (ed.),The Exchange Rate, International Trade and the Balance of Payments, Reserve Bank of Australia.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:26:y:1987:i:48:p:43-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.