United States monetary policy has traditionally been modeled under the
assumption that the domestic economy is immune to international factors
and exogenous shocks. Such an assumption is increasingly unrealistic in
the age of integrated capital markets, tightened links between national
economies, and reduced trading costs. International Dimensions of
Monetary Policy brings together fresh research to address the
repercussions of the continuing evolution toward globalization for the
conduct of monetary policy.
In this comprehensive book, the authors examine the real and potential
effects of increased openness and exposure to international economic
dynamics from a variety of perspectives. Their findings reveal that
central banks continue to influence decisively domestic economic
outcomes--even inflation--suggesting that international factors may have
a limited role in national performance. International Dimensions of
Monetary Policy will lead the way in analyzing monetary policy measures
in complex economies.