Monetary Independence Under Flexible Exchange Rates

arbitrage Balance of Payments bank reserves billion bop adjustment bop equilibrium Bretton Woods system central bank coefficient countries current account definition of money degree of monetary determined Deutsche Bundesbank domestic bank domestic economy domestic interest rates domestic money supply effect equation estimated Eurocurrency deposits Eurocurrency market Eurodollar European exchange rate changes exchange rate system exchange regime exports external factors fixed exchange rates flexible exchange rates flexible rates Floating Exchange Rates fluctuations foreign assets foreign currency foreign exchange market funds German mark growth hypothesis Ibid income increase inflationary inflows insulation international capital international monetary system international reserves intervention liquidity mone monetary aggregates monetary authorities monetary base monetary independence monetary policy money market money stock Mundell national monetary nonbank offset open economy parity percent portfolio relative prices reserve requirements sector short-term capital flows Snake speculative stability tary terms of trade tion U.S. dollar variables West Germany