| Zusammenfassung: | summary: the theoretical origins of the present paper are to be found in the seminal studies of j.m. fleming and r.a. mundell on the effects of monetary policy under a system of flexible exchange rates. their "traditional" approach, according to which a monetary expansion leads to a rise of domestic expenditures and an improvement in the current account balance, is described in chapter i. in chapter ii, the traditional approach is extended by introducing money-multiplier processes, relaxing the"small country" assumption, and including price effects, the real balance effect, the influence of output on the capital account balance , the forward exchange market and speculation. it is shown that an important policy implication of the traditional theory - that monetary policy is effective with regard to income and employment - is robust with respect to the above modifications. however, the chapter indicates that if a logically coherent specification of the terms-of-trade effect is incorporated into the traditional model, the classic propositions of the model hold only in the case of perfect capital mobility. chapter iii deals with a general criticism of the traditional approach and chapter iv proceeds to develop models based on the monetar approach of the balance of payments theory. these models are used to analyse the short and long run effects of monetary policy. the traditional short run effects of a monetary expansion may be obtained under the assumption of perfect substitutability between foreign and domestic assets. in the long run, monetary policy is neutral, unless international interest payments and capital gains are taken into account. if the perfect substitutability assumption is dropped, the long run non-neutrality of monetary policy emerges.;
|
|---|