The Monetary Approach to External Adjustment: A Case Study of Italy

The book consists of an empirical application of the monetary approach to the balance of payments and exchange rate to the Italian experience in the postwar period. Its main emphasis is on the effects of Italian monetary policy on the balance of payment and/or the exchange rate; the average lag of the latter two variables with respect to monetary disturbances is calculated and the implications for the degree of independence of monetary policy are evaluated.