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On the Eflicieney of Monetary Policy in the EMS
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 4 : pp. 417–428
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Borchert, Manfred
Abstract
In principle no new theoretical approach to the question of international transmission mechanism and to that of the efficiency of monetary policy has to be introduced by the EMS. But there are institutional facts and burdens which have been inherited from the past and which give rise to new problems. Such problems, for instance, occur due to the bilateral obligation to intervene in EMS-currencies, or due to dollar-speculation involving conversion into one of the member currencies, and finally due to international capital movements. The implications of these issues are discussed here, and a solution for the involved intervention problem is offered in rough lines.