Monetary Policy in the New Global Economy: The Case of Japan

1992-01-01T00:00:00Z (GMT) by Allan Meltzer

The title of this session asks an old question in a new form: Have institutional changes, in this case so-called globalization, reduced the effect of money on prices and other nominal variables? The simple answer is no, but a more complete answer would be, no for large countries like the United States but perhaps yes for small, open economies with free capital movements. I will give two principal reasons.