Central Banking, Monetary Policy, and Exchange Rates

This informative book provides an overview of monetary policy in open economies from a post-Keynesian perspective. Leading experts discuss how exchange rate dynamics interact with central banking practices, monetary policy strategies and how they influence growth and inflation.

Across a blend of theoretical and empirical chapters, the book examines transformations in the framework of central banking and monetary policymaking, including the recognition that the exchange rate should not be viewed merely as a passive shock absorber but as a strategic policy variable. The contributing authors address exchange rate determination in the context of high financial integration and investigate the macroeconomic implications of exchange rate volatility. Chapters explore key topics such as conflict inflation, interest-rate parity theorems, the Covid-19 shock and the global offshore-dollar system.

Students and academics focusing on post-Keynesian economics, financial economics and regulation, political economy and money and banking will greatly benefit from this book. It is also an interesting read for practitioners in central banking.

Edited by Lilian Rolim, Assistant Professor, Instituto de Economia, Universidade Estadual de Campinas (UNICAMP), Nathalie Marins, Assistant Professor, Federal University of Rio de Janeiro and Sylvio Antonio Kappes, Assistant Professor, Federal University of Alagoas, Brazil, Co-Editor, Review of Political Economy and Co-Director, Monetary Policy Institute