Central Bank Autonomy, the Exchange Rate Constraint and Inflation: The Case of Italy, 1970â€“1992
This paper analyzes the determinants of inflation in Italy over the period 1970â€“1992. Particular emphasis is placed on the role of central bank independence in influencing monetary growth, and on the role of monetary growth and of the Exchange rate Mechanism (ERM) in affecting inflation. In the 1970s and early 1980s, when the Bank of Italy lacked independence and the ERM was still not credible, monetary growth was highly unstable and was the main determinant of Italian inflation, although oil price and tax shocks also played a role. After the March 1983 general exchange rate realignment and the French U-turn, the ERM became more credible and monetary growth stopped being a significant determinant of inflation; instead, the German inflation became the main variable influencing Italian inflation. Copyright Kluwer Academic Publishers 1997
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
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.:
- Burdekin, Richard C K & Laney, Leroy O, 1988.
"Fiscal Policymaking and the Central Bank Institutional Constraint,"
Wiley Blackwell, vol. 41(4), pages 647-62.
- Richard C.K. Burdekin & Leroy O. Laney, 1986. "Fiscal policymaking and the central bank institutional constraint," Research Paper 8606, Federal Reserve Bank of Dallas.
- Pierre-Richard AgÃ©nor & Mark P. Taylor, 1992.
"Testing for Credibility Effects,"
IMF Staff Papers,
Palgrave Macmillan, vol. 39(3), pages 545-571, September.
When requesting a correction, please mention this item's handle: RePEc:kap:openec:v:8:y:1997:i:1:p:31-49. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.