Indirect convertibility as a money rule for inflation targeting
AbstractIn this paper we re-examine the case for Indirect Convertibility made by Greenfield and Yeager (1983, 1989) as a mechanism for promoting greater internal price level stability. We argue that with some reinterpretation, indirect convertibility can be interpreted as a convenient, practical monetary policy rule by which central banks engaged in inflation targeting can better achieve their price stabilization goals. It also implies that the more general acceptance of indirect convertibility by a set of countries pursuing a common inflation target would better coordinate group success and by doing so could form an important intermediate step in coordinating the adoption of a common currency
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Financial Economics.
Volume (Year): 13 (2003)
Issue (Month): 10 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAFE20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bennett T. McCallum, 1999. "Recent developments in the analysis of monetary policy rules," Review, Federal Reserve Bank of St. Louis, issue Nov, pages 3-12.
- repec:fip:fedlps:y:1999:x:8 is not listed on IDEAS
- Pierre L. Siklos, 1999. "Inflation-target design: changing inflation performance and persistence in industrial countries," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 46-58.
- Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December.
- Dowd, Kevin, 1995. "The Mechanics of Indirect Convertibility," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 67-88, February.
- George A. Selgin & Lawrence H. White, 1994.
"How Would the Invisible Hand Handle Money?,"
Journal of Economic Literature,
American Economic Association, vol. 32(4), pages 1718-1749, December.
- Greenfield, Robert L & Yeager, Leland B, 1983. "A Laissez-Faire Approach to Monetary Stability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(3), pages 302-15, August.
- Garrison, Roger W & White, Lawrence H, 1997. "Can Monetary Stabilization Policy Be Improved by CPI Futures Targeting? A Comment," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(4), pages 535-41, November.
- Sumner, Scott, 1997. "Can Monetary Stabilization Policy Be Improved by CPI Futures Targeting? Reply," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 29(4), pages 542-45, November.
- William Poole, 1999. "Monetary policy rules?," Review, Federal Reserve Bank of St. Louis, issue Mar, pages 3-12.
- Sumner, Scott, 1995. "The Impact of Futures Price Targeting on the Precision and Credibility of Monetary Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(1), pages 89-106, February.
- Patinkin, Don, 1996. "Indirect Convertibility and Irving Fisher's Compensated Dollar: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(1), pages 130-31, February.
- Schnadt, Norbert & Whittaker, John, 1993. "Inflation-Proof Currency? The Feasibility of Variable Commodity Standards," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 25(2), pages 214-21, May.
- John C. Williams, 1999.
"Simple rules for monetary policy,"
Finance and Economics Discussion Series
1999-12, Board of Governors of the Federal Reserve System (U.S.).
- J. Stephen Ferris, 2003. "Competitive Bank Monies: Reconsidering Hayek and Klein from a Transactions Perspective," Carleton Economic Papers 03-02, Carleton University, Department of Economics.
- J. Stephen Ferris & John Galbraith, 2006. "On Hayek's denationalization of money, free banking and inflation targeting," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 13(2), pages 213-231.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.