INFER Studies Vol. 4

Challenges for Monetary Policy in a Global Financial Market Environment
2nd INFER Workshop on Financial Markets, May 2001

The rise of global financial markets has been one of the most important economic trends of the last decade. International capital mobility has rapidly increased, and global financial and monetary transactions nowadays by far surpass international commodity movements. In addition, the introduction of the single currency in Europe has made it necessary to decide on an adequate monetary policy strategy for the new euro currency area composed of currently twelve countries with substantial differences in monetary policy traditions and strategies. Furthermore it has established a new international monetary order. In the future all monetary policy decision will be centred around the new Dollar-Yen-Euro triad. In addition to solving traditional issues, monetary policy will therefore need to meet the challenges brought up by these significant institutional changes in international financial markets.

Against this background the 2^nd INFER Workshop on Financial Markets entitled "Challenges for Monetary Policy in a Global Financial Market Environment", held on May 11, 2001 in Frankfurt am Main, Germany, focused on two major aspects: monetary policy strategies on the one hand, and exchange rates and exchange rate policy on the other hand. A panel of renowned German economists and researchers representing the various groups working in the field of monetary policy (central banks, commercial banks, universities and research institutions) made their contributions to the workshop. Papers with theoretical substance as well as practical relevance for monetary policy today and in the future were presented and discussed. The contributions included in this volume reflect the up-to-date and in-depth level of discussion at the event. The book includes the following papers:

• Marc S. Resinek / Michael H. Stierle: Monetary Policy Issues in a Global Financial Market Context

• Martin Leschke / Thorsten Polleit: Monetary Targeting in the Euro Area: Antiquated Strategy or Robust Stabilizer?

• Stefan Schneider / Christoph Harff: Is the Two-Pillar Strategy an Adequate Response to the Challenges Facing European Monetary Policy?

• Peter Bofinger: "Managed Floating" als währungspolitische Strategie zur Krisenprävention?

• Rainer Schweickert: Cause or Cure for Financial Crises? Experience with Exchange Rate Anchors and Lessons for Latin America

• Ulrich Grosch: The Future Role of the Euro on International Financial Markets

You may find further information about this successful workshop here.

Order

The INFER Studies Vol. 4 (117 pages) may be purchased for 24.90 EUR in every bookshop
(ISBN: 3-89700-164-0) or can be ordered at the publishing house:

Verlag für Wissenschaft und Forschung,
Postfach 30 40 51,
D-10725 Berlin

You may also order online: www.vwf.de