Monetary Policy Independence under Flexible Exchange Rates: An Illusion?
NBER Working Paper No. 20893
---- Acknowledgments ----
This paper is based on a talk I gave at the Ronald I. McKinnon Memorial Conference, held at Stanford University on January 9, 2015. I thank John Taylor for comments. As always, I have benefitted from discussions with Ed Leamer. I thank Vittorio Corbo and José De Gregorio, former governors of the Central Bank of Chile, and Guillermo Ortiz, former governor of the Central Bank of Mexico (Banxico), for useful conversations on “monetary policy contagion.” The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.