Abstract
The quality of a monetary policy can be gauged by the extent to which it succeeds in fulfilling the functions allocated to it. The Bundesbank Act assigns the Deutsche Bundesbank the task of ‘safeguarding the currency’. There has been little dispute in West Germany to date that this means primarily that monetary-policy action must be geared to the goal of domestic price level stability. If the price trend in West Germany is considered on a long-term basis, it becomes clear that the Bundesbank has generally come fairly close to this goal, even though it was unable to completely prevent price development in West Germany from following the international inflation trend during phases of world-wide inflation.
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Notes
K.-D. Geisler, ‘Zur “Kausalität” von Geldmenge und Sozialprodukt’, Kredit und Kapital, 319 (1986) 325–38.
J.A. Baker, ‘Statement before the Committee on Foreign Relations of the U.S. Senate’, U.S. Treasury News, Washington, DC, 1986.
J. Williamson, Target Zones and Indicators as Instruments for International Economic Policy Coordination: A Report to the Group of 24 (Washington, DC, September 1986).
J. Williamson, The Exchange Rate System, 2nd edn (Washington, DC, 1985).
R.I. McKinnon, An International Standard for Monetary Stabilization, (Washington, DC, March 1984).
For details cf. N. Kloten, ‘Wege zu einer Europäischen Währungsunion — Chancen und Risiken’, Wirtschaftspolitische Kolloquien der Adolf-Weber-Stiftung, 14 (1987).
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© 1992 Stephen F. Frowen and Dietmar Kath
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Kloten, N. (1992). The Control of Monetary Aggregates in the Federal Republic of Germany under Changing Conditions. In: Frowen, S.F., Kath, D. (eds) Monetary Policy and Financial Innovations in Five Industrial Countries. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-21684-0_3
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DOI: https://doi.org/10.1007/978-1-349-21684-0_3
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