Target zones and wealth effects: Current account implications of alternative policy assignments

This paper evaluates the current-account implications of coordinated disinflationary policy in a two-country framework, when fiscal policy is assigned to control inflation and monetary policy is used to hold down the exchange rate at its â€œtarget zoneâ€ level. The performance of an alternative regime, where monetary policy controls inflation and fiscal policy is assigned to control the current account is also assessed. Copyright Kluwer Academic Publishers 1991

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Year of publication:	1991
Authors:	Tirelli, Patrizio
Published in:	Open Economies Review. - Springer. - Vol. 2.1991, 1, p. 65-82
Publisher:	Springer
Subject:	exchange rate regimes \| policy coordination \| current-account equilibrium \| target zones

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005715222