The browser you are using is not supported by this website. All versions of Internet Explorer are no longer supported, either by us or Microsoft (read more here: https://www.microsoft.com/en-us/microsoft-365/windows/end-of-ie-support).

Please use a modern browser to fully experience our website, such as the newest versions of Edge, Chrome, Firefox or Safari etc.

On the link between exchange-rate regimes, capital controls and monetary policy autonomy in small European countries, 1979-2000

På svenska

Author

Summary, in English

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.

Publishing year

2006

Language

English

Pages

341-368

Publication/Series

World Economy

Volume

29

Issue

3

Document type

Journal article

Publisher

Wiley-Blackwell

Topic

  • Economics and Business

Status

Published

ISBN/ISSN/Other

  • ISSN: 1467-9701