On the link between exchange-rate regimes, capital controls and monetary policy autonomy in small European countries, 1979-2000
(2006) In World Economy 29(3). p.341-368- Abstract
- We investigate international monetary-policy transmission under different exchange-rate and capital-account regimes in eleven small, open economies during the 1980s and 1990s. We find no systematic link between ex-post monetary-policy autonomy and exchange-rate regimes. Capital controls appear to have provided a degree of temporal insulation from foreign monetary policy shocks, though not strict autonomy. The results are consistent both with short-term autonomy for small countries even under fixed exchange rates and an open capital account, and with long-term dependence under flexible exchange rates and an independent stability target. Results also indicate that euro-area market interest rates are significantly more responsive to the... (More)
- We investigate international monetary-policy transmission under different exchange-rate and capital-account regimes in eleven small, open economies during the 1980s and 1990s. We find no systematic link between ex-post monetary-policy autonomy and exchange-rate regimes. Capital controls appear to have provided a degree of temporal insulation from foreign monetary policy shocks, though not strict autonomy. The results are consistent both with short-term autonomy for small countries even under fixed exchange rates and an open capital account, and with long-term dependence under flexible exchange rates and an independent stability target. Results also indicate that euro-area market interest rates are significantly more responsive to the development of the corresponding US rate than were the previous national rates. (Less)
Please use this url to cite or link to this publication:
https://lup.lub.lu.se/record/693479
- author
- Forssbaeck, Jens LU and Oxelheim, Lars LU
- organization
- publishing date
- 2006
- type
- Contribution to journal
- publication status
- published
- subject
- in
- World Economy
- volume
- 29
- issue
- 3
- pages
- 341 - 368
- publisher
- Wiley-Blackwell
- external identifiers
-
- wos:000236147000006
- scopus:33645971311
- ISSN
- 1467-9701
- DOI
- 10.1111/j.1467-9701.2006.00786.x
- language
- English
- LU publication?
- yes
- id
- 5341ffe4-62a8-4809-9ee5-fc69068e0953 (old id 693479)
- date added to LUP
- 2016-04-01 15:52:06
- date last changed
- 2022-04-22 18:00:02
@article{5341ffe4-62a8-4809-9ee5-fc69068e0953,
abstract = {{We investigate international monetary-policy transmission under different exchange-rate and capital-account regimes in eleven small, open economies during the 1980s and 1990s. We find no systematic link between ex-post monetary-policy autonomy and exchange-rate regimes. Capital controls appear to have provided a degree of temporal insulation from foreign monetary policy shocks, though not strict autonomy. The results are consistent both with short-term autonomy for small countries even under fixed exchange rates and an open capital account, and with long-term dependence under flexible exchange rates and an independent stability target. Results also indicate that euro-area market interest rates are significantly more responsive to the development of the corresponding US rate than were the previous national rates.}},
author = {{Forssbaeck, Jens and Oxelheim, Lars}},
issn = {{1467-9701}},
language = {{eng}},
number = {{3}},
pages = {{341--368}},
publisher = {{Wiley-Blackwell}},
series = {{World Economy}},
title = {{On the link between exchange-rate regimes, capital controls and monetary policy autonomy in small European countries, 1979-2000}},
url = {{http://dx.doi.org/10.1111/j.1467-9701.2006.00786.x}},
doi = {{10.1111/j.1467-9701.2006.00786.x}},
volume = {{29}},
year = {{2006}},
}