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Monetary policy frameworks since Bretton Woods, across the world and its regions

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  • Cobham, David

Abstract

The Comprehensive Monetary Policy Framework (CMPF) project, which considers de jure and de facto, domestic (money, inflation) and external (exchange rate), monetary policy targets, has now classified 179 countries/currency areas from 1974 to 2017. This means that it is now possible to track the evolution of monetary policy frameworks across the world and its regions. This paper outlines the methodology of the classification, presents the broad trends at global, regional and sub-regional levels, discusses the economic performance associated with different frameworks and the policy implications thereof, and identifies scope for further work.

Suggested Citation

  • Cobham, David, 2022. "Monetary policy frameworks since Bretton Woods, across the world and its regions," MPRA Paper 114534, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114534
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    References listed on IDEAS

    as
    1. Cobham, David & Macmillan, Peter & Mason, Connor & Song, Mengdi, 2022. "Economic performance under different monetary policy frameworks," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 431-449.
    2. Sullivan, Megan, 2023. "Determinants of monetary policy frameworks in emerging and developing countries," MPRA Paper 118398, University Library of Munich, Germany.
    3. David Cobham, 2022. "Monetary policy frameworks in the Middle East and North Africa: How do they compare with other groupings?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 69(1), pages 108-130, February.
    4. Carmen M. Reinhart & Kenneth S. Rogoff, 2004. "The Modern History of Exchange Rate Arrangements: A Reinterpretation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 1-48.
    5. Levy Yeyati, Eduardo & Sturzenegger, Federico & Reggio, Iliana, 2010. "On the endogeneity of exchange rate regimes," European Economic Review, Elsevier, vol. 54(5), pages 659-677, July.
    6. repec:bla:ecpoli:v:15:y:2000:i:30:p:7-46 is not listed on IDEAS
    7. Ethan Ilzetzki & Carmen M Reinhart & Kenneth S Rogoff, 2019. "Exchange Arrangements Entering the Twenty-First Century: Which Anchor will Hold?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(2), pages 599-646.
    8. David Cobham, 2021. "A comprehensive classification of monetary policy frameworks in advanced and emerging economies," Oxford Economic Papers, Oxford University Press, vol. 73(1), pages 2-26.
    9. Levy-Yeyati, Eduardo & Sturzenegger, Federico, 2005. "Classifying exchange rate regimes: Deeds vs. words," European Economic Review, Elsevier, vol. 49(6), pages 1603-1635, August.
    10. Eduardo Levy Yeyati & Federico Sturzenegger, 2016. "Classifying Exchange Rate Regimes: 15 Years Later," CID Working Papers 319, Center for International Development at Harvard University.
    11. Guillermo A. Calvo & Carmen M. Reinhart, 2002. "Fear of Floating," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 379-408.
    12. Andrew K. Rose, 2000. "One money, one market: the effect of common currencies on trade," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(30), pages 08-45.
    13. Cobham, David, 2018. "A comprehensive classification of monetary policy frameworks for advanced and emerging economies," MPRA Paper 84737, University Library of Munich, Germany.
    14. Holger C. Wolf & Atish R. Ghosh & Helge Berger & Anne-Marie Gulde, 2008. "Currency Boards in Retrospect and Prospect," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232650, December.
    15. Cobham, David & Song, Mengdi, 2021. "Transitions between monetary policy frameworks and their effects on economic performance," Economic Modelling, Elsevier, vol. 95(C), pages 311-329.
    16. Mr. Paolo Mauro & Miss Grace Juhn, 2002. "Long-Run Determinants of Exchange Rate Regimes: A Simple Sensitivity Analysis," IMF Working Papers 2002/104, International Monetary Fund.
    17. Cobham, David & Song, Mengdi, 2020. "How do countries choose their monetary policy frameworks?," Journal of Policy Modeling, Elsevier, vol. 42(6), pages 1187-1207.
    18. Ms. Filiz D Unsal & Mr. Chris Papageorgiou & Hendre Garbers, 2022. "Monetary Policy Frameworks: An Index and New Evidence," IMF Working Papers 2022/022, International Monetary Fund.
    19. Meissner, Christopher M. & Oomes, Nienke, 2009. "Why do countries peg the way they peg? The determinants of anchor currency choice," Journal of International Money and Finance, Elsevier, vol. 28(3), pages 522-547, April.
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    Cited by:

    1. Lee, King Fuei, 2023. "Effects of Monetary Policy Frameworks on Stock Market Volatilities: An Empirical Study of Global Economies," MPRA Paper 119755, University Library of Munich, Germany.
    2. Cobham, David, 2025. "Monetary policy frameworks from 1999 to 2003: the less it changes the less it stays the same," MPRA Paper 124937, University Library of Munich, Germany.

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    Keywords

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    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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