Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82862
Authors: 
Bergvall, Anders
Year of Publication: 
2002
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2002:14
Abstract: 
This paper analyzes the stabilizing properties of alternative monetary policy regimes. In practice there is a choice between two broad types of monetary policy regimes: a fixed exchange rate regime or a floating exchange rate regime. In this paper I compare exchange rate targeting with different floating exchange rate regimes: strict price level targeting, flexible price level targeting and output gap targeting. The paper also evaluates the actual choice of monetary policy regime for seven countries with a pure floating exchange rate regime. In most cases the actual regime can be described as flexible price level targeting. The results suggest that flexible and strict price level targeting gives lower real and nominal variability than both exchange rate targeting and output gap targeting.
Subjects: 
Monetary policy
exchange rates
macroeconomic stability
JEL: 
E52
F31
F41
Document Type: 
Working Paper

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