Abstract
In its most extreme form, the monetary approach to the balance of payments assumes that central banks in open economies with fixed exchange rates have no ability to affect the nominal money stock. Among others, Aghevli and others (1979, p. 776) and Smaghi (1982) have used this proposition in more moderate form to assert that Pacific Basin developing countries have only limited monetary policy independence. Even if these developing countries were able to pursue independent monetary policies, Connolly and Taylor (1979) find that developing countries generally do not appear to pursue any systematic monetary policy.
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Fry, M.J., Lilien, D.M., Wadhwa, W. (1988). Monetary Policy in Pacific Basin Developing Countries. In: Cheng, HS. (eds) Monetary Policy in Pacific Basin Countries. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2685-1_7
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DOI: https://doi.org/10.1007/978-94-009-2685-1_7
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