IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-1-349-16863-7_5.html
   My bibliography  Save this book chapter

Exchange Rate and Monetary Policy in a World of Real Exchange Rate Variability

In: Exchange Rate Policy

Author

Listed:
  • Pieter Korteweg

Abstract

In this paper we shall discuss in broad outline the main sources of exchange rate variability that characterised the 1970s. We shall try to distinguish between the sources of nominal exchange rate movements such as differential growth rates of money per unit of output, and the sources of real exchange rate movements such as the discovery and exploitation of North Sea oil and natural gas. Following that we shall consider the possible role of monetary policy in preventing such nominal and real exchange rate movements from occurring or affecting the spot rates of exchange. Specifically, we want to raise the question of what monetary policies should look like in order to obtain exchange rate and price level stability, whether pegged-parity arrangements like the current EMS are of any help in this respect, whether exchange rate stability is compatible with price level stability and, if not, what should come first, and whether exchange rate changes can be instrumental in changing a country’s competitive position and equilibrating its balance of payments.

Suggested Citation

  • Pieter Korteweg, 1982. "Exchange Rate and Monetary Policy in a World of Real Exchange Rate Variability," Palgrave Macmillan Books, in: Roy A. Batchelor & Geoffrey E. Wood (ed.), Exchange Rate Policy, chapter 4, pages 135-169, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-16863-7_5
    DOI: 10.1007/978-1-349-16863-7_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-1-349-16863-7_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.