Exchange Rate, Monetary, and Inflation Targets

Vol. 22 No. 1 (2002)

Jan-Mar / 2002
Published January 1, 2002
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Mendonça, Helder Ferreira de. 2002. “Exchange Rate, Monetary, and Inflation Targets”. Brazilian Journal of Political Economy 22 (1):36-54.

Exchange Rate, Monetary, and Inflation Targets

Helder Ferreira de Mendonça
Professor do Departamento de Economia da Universidade Federal Fluminense.
Brazilian Journal of Political Economy, Vol. 22 No. 1 (2002), Jan-Mar / 2002, Pages 36-54


Since the beginning of the Quantitative Theory of Money by David Hume, the relation between money and price level has been analyzed by monetary economists. Nowadays the search for price stability has induced the policymakers to adopt one of three monetary regimes: fixed exchange rate, monetary targeting, or inflation targeting. The present paper makes a comparative analysis among these possibilities highlighting the advantages and disadvantages that belong to each monetary regime.

JEL Classification: E52; E58.

Keywords: Targets Exchange rate monetary aggregates inflation