The concept of rules for monetary policy has been more and more critized in recent years. The Deutsche Bundesbank is also urged to give up monetary targeting. The idea is that the economic performance could be improved if monetary policy became more pragmatic and was more concerned about slow...

Money supply targeting has come out of fashion. The large changes in velocity in some countries and the fact that inflation is still low in spite of the strong monetary expansion in most industrial economies since 1985 have undermined the formerly accepted notion of a stable relationship between...

Two datasets are combined to analyze a few standard implications of the theory of economic growth. Real GDP per capita (RGDP) and the investment share (IS) are taken from Summers, Heston (1988), the ratio of net external assets to GDP (=NAP) are calculated by Sinn (1990). For the period...

Real effective exchange rates and economic activity in trading partner countries have a considerable impact on real exports of the G7-countries. Using an errorcorrection framework we find that the short-run and the long-run effects differ substantially between the countries. The relative...

Between 1995 and 2005, the German economy has experienced a phase of weak economic growth. We analyze whether this weak growth performance can be attributed to the stance of monetary conditions during that period. We show that the real effective exchange rate did have almost no dampening effects...