Abstract
The paper takes issue with recent proposals for monetary policy in unified Germany. It rejects the proposal of a monetary policy being guided only by indicators for the FRG and not for unified Germany. Instead it argues in favour of a European orientation of German monetary policy. It gives a portfoliotheoretical argument for the hypothesis that the European money demand function is more stable than the German one. The higher stability of the European money demand function can be exploited profitably if money supply targetting in Germany is properly euroepeanized.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsPreview
Unable to display preview. Download preview PDF.
References
Fair, R.C.(1987), International Evidence on the Demand for Money, Review of Economics and Statistics, 69, pp. 473–480.
IMF (1990), International Financial Statistics, Washington, March.
Friedman, M. (1960), A Program for Monetary Stability, Fordham University Press, New York.
Kremers, J.M. and T.D. Lane (1990), Economic and Monetary Integration and the Aggregate Demand for Money in the EMS, Washington, March.
Läufer, N.K.A. (1990a), Vier Papiere zur Deutschen Währungsunion, KOSAGA-Konstanzer Schriften aus Geld– und Außenwirtschaft, No. 1, Hartung-Gorre-Verlag, Konstanz.
Läufer, N.K.A. (1990b), Money demand stability and money supply targetting in EMS-Europe, working paper, Konstanz.
Läufer, N.K.A. (1990c), Die relative Stabilität der europäischen Geldnachfragefunktion (The relative stability of the European money demand function), Proceedings of the Workshop on “Okonometrie und monetärer Sektor”, February, 5–6th, 1991, Karlsruhe, Physica-Verlag (forthcoming)
McKinnon, R.I. (1974), A New Tripartite Monetary Agreement or a Limping Dollar Standard?, Princeton Essays in International Finance, No. 106, October.
(1984), An International Standard for Monetary Stabilization, Washington: Institute for International Economics.
Russo, M. and G. Tullio (1988), Monetary Coordination within the European Monetary System: Is There a Rule? in: Policy Coordination in the European Monetary System, Occasional Paper 61, International Monetary Fund, Washington, September.
Boulding, K. (1969), How does Monetary Policy Affect the Economy?, Journal of Money, Credit And Banking, vol. 1, p. 55.
Gaab, W. and H. Seitz (1988), Zur Frage der Stabilität der Geldnachfrage M1 in der Bundesrepublik Deutschland, in: W. Franz, W. Gaab, J. Wolters (eds.), Theoretische und angewandte Wirtschaftsforschung, Springer-Verlag Heidelberg, pp. 93–121.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1992 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Läufer, N.K.A., Gaab, W. (1992). A Monetary Policy for Unified Germany: Europeanization of Money Supply Targetting. In: Vosgerau, HJ. (eds) European Integration in the World Economy. Studies in International Economics and Institutions. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-07133-5_4
Download citation
DOI: https://doi.org/10.1007/978-3-662-07133-5_4
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-662-07135-9
Online ISBN: 978-3-662-07133-5
eBook Packages: Springer Book Archive