Einige Auswirkungen der Währungspolitik auf den finanziellen Sektor

Abstract

Some Effects of Monetary Policy on the Financial Sector

The first part of the paper deals with monetary effects of current monetary policy arrangements which can be derived from the monetary theory of the balance of payments and purchasing power parity theory. The author reaches the conclusion that the theory of purchasing power parity cannot be applied to the relationship of European currencies to the dollar, because the exchange rate movements are not “independent” (G. Cassel). There can be no question of a failure of the theorem because the prerequisites for its functioning are lacking. In general, therefore, the monetary approach of balance-ofpayments theory is applicable and thus there is a direct (international) interrelationship of interest rates. Countries with a relatively low interest rate (and relatively little inflation) become capital-exporting countries in two senses: As preferred lender countries for foreign borrowers, and in consequence of the tendency of domestic investors to switch to countries with a relatively higher nominal interest level. Concrete effects of this circumstance on the business policy of the banks are examined in the second part of the paper. In particular, an analysis is undertaken of business policy consequences arising from substitution of the risk of interest rate changes for the exchange rate risk