Konsequenzen einer Abweichung vom Geldmengenziel für die Geldpolitik

The Bundesbank failed to achieve her monetary targets in numerous years. Against this background the present paper discusses the implications of these deviations for the exchange rate and the price level. The model by DORNBUSCH (1976) is augmented by an equation which captures the correction of the deviations in subsequent periods. In the case of single period deviations with immediately beginning correction the volatility of the exchange rate and the price level will be the smaller, the more decisively the money stock is driven back to the equilibrium level. In contrast, in the case of multi-period deviations the volatility of the exchange rate will be the higher the faster the correction of the money stock.