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Monetary Policy and the Real Exchange Rate

In: Global Imbalances, Exchange Rates and Stabilization Policy

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  • Anthony J. Makin

Abstract

The conduct and effectiveness of monetary policy has changed markedly over recent decades as capital markets have become more internationally integrated, external imbalances have widened and exchange rates have become more variable. Inflation targeting is also now a primary goal of monetary policy in many advanced and emerging economies. Yet in this financially globalized context, many unresolved questions remain about the nature of the monetary policy transmission mechanism under floating exchange rates.

Suggested Citation

  • Anthony J. Makin, 2009. "Monetary Policy and the Real Exchange Rate," Palgrave Macmillan Books, in: Global Imbalances, Exchange Rates and Stabilization Policy, chapter 9, pages 143-162, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-25075-8_9
    DOI: 10.1057/9780230250758_9
    as

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