Effects of U.S. Monetary Restraint on the DM-$ Exchange Rate and the German Economy
This paper assesses the quantitative effects of a shift to monetary restraint in the United States on the DM-$ exchange rate and the German economy. The results indicate that such effects are large. If Germany keeps its money growth unchanged, it will tend to experience a sharp and sustained depreciation of the deutsche mark and a significant increase in inflation and in unemployment. If it adopts an equivalent policy of monetary restraint, it will tend to benefit from a marked decline in inflation, but the cost in terms of lost output is extremely large.
|Date of creation:||Jul 1982|
|Date of revision:|
|Publication status:||published as Artus, Jacques R. "Effects of U.S. Monetary Restraint on the DM-$ Exchange Rate and the Germany Economy." Exchange Rate Theory and Practice, ed. by John F. O. Bilson and Richard C. Marston. Chicago UCP. (1984).|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
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.:
- William H. Branson & Julio J. Rotemberg, 1981.
"International adjustment with wage rigidity,"
in: International Seminar on Macroeconomics, pages 309-332
National Bureau of Economic Research, Inc.
- William H. Branson & Julio J. Rotemberg, 1991. "International Adjustment with Wage Rigidity," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 13-44 National Bureau of Economic Research, Inc.
- Branson, William H. & Rotemberg, Julio J., 1980. "International adjustment with wage rigidity," European Economic Review, Elsevier, vol. 13(3), pages 309-332, May.
- Barro, Robert J., 1978.
"Unanticipated Money, Output, and the Price Level in the United States,"
3450988, Harvard University Department of Economics.
- Barro, Robert J, 1978. "Unanticipated Money, Output, and the Price Level in the United States," Journal of Political Economy, University of Chicago Press, vol. 86(4), pages 549-80, August.
- Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0926. 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: ()
If references are entirely missing, you can add them using this form.