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Current Issues in the Design and Conduct of Monetary Policy

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  • Mr. Mohsin S. Khan

Abstract

Movements in global capital during the late 1990s and the greater emphasis on price stability led many countries to abandon fixed exchange rate regimes and to design institutions and monetary policies to achieve credibility in the goal of lowering inflation. Such recent developments have brought to the forefront the idea that freely mobile capital, independent monetary policy, and fixed exchange rates form an "impossible trinity." It is possible to have two of these policies, but not all three. Inflation-targeting regimes being adopted by many countries provide a way of resolving this dilemma.

Suggested Citation

  • Mr. Mohsin S. Khan, 2003. "Current Issues in the Design and Conduct of Monetary Policy," IMF Working Papers 2003/056, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:2003/056
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    References listed on IDEAS

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    Cited by:

    1. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    2. Mr. Cem Karacadag & Rupa Duttagupta & Mrs. Gilda C Fernandez, 2004. "From Fixed to Float: Operational Aspects of Moving towards Exchange Rate Flexibility," IMF Working Papers 2004/126, International Monetary Fund.
    3. Mr. Saade Chami & Selim Elekdag & Todd Schneider & Nabil Ben Ltaifa, 2007. "Can a Rule-Based Monetary Policy Framework Work in a Developing Country? The Case of Yemen," IMF Working Papers 2007/006, International Monetary Fund.
    4. Ibrahim L. AWAD, 2008. "Is Egypt Ready to Apply Inflation Targeting Regime?," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 2, pages 141-159, November.
    5. Grand Nathalie & Dropsy Vincent, 2005. "Exchange Rate And Inflation Targeting In Morocco And Tunisia," Macroeconomics 0507018, University Library of Munich, Germany.
    6. Witold Jakóbik, 2007. "On the Fundamental Principles of Economic Policy," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 1(2), June.
    7. Ibrahim L. Awad, 2009. "Did Egypt Satisfy Prerequisites for an it Regime?," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2009(6), pages 63-80.
    8. Saade CHAMI & Selim ELEKDAG & Todd SCHNEIDER & Nabil BEN LTAIFA, 2008. "Can A Rule‐Based Monetary Policy Framework Work In A Developing Country? The Case Of Yemen," The Developing Economies, Institute of Developing Economies, vol. 46(1), pages 75-99, March.
    9. Ahmed M. Khalid, 2006. "Is Inflation Targeting the Best Policy Choice for Emerging Economies? A Survey of Emerging Market Experiences and Lessons for Pakistan," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 2, pages 145-165.

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