Germany always had a concern with monetary growth, with formal targets from 1975 used as an intermediate objective in pursuit of price stability. At the same time it was a member of the Snake and then of the EMS, and acted to preserve the exchange rate parity to varying extents in response to wider international and European developments.
|Years||Targets and attainment||Classification|
|1974||aim of restricting growth of central bank money but no announced target; forex interventions within Snake||loosely structured discretion LSD|
|1975-85||monetary targets mostly met, forex intervention mainly vs USD but some vs European currencies within Snake, then from 1979 within EMS; monetary control mainly via OMOs and rediscount facilities||monetary with exchange rate targeting MwERT|
|1986-87||monetary targets overshot, interest rates and heavy forex intervention used to limit appreciation||exchange rate with monetary targeting ERwMT|
|1988-91||monetary targets attained; German Economic, Monetary and Social Union May 1990||MwERT|
|1992-93||monetary target overshot 1992, barely attained 1993; heavy intervention in ERM upheavals||ERwMT|
|1994-8||monetary targets attained 4 years out of 5, in hardening EMS||MwERT|
|1999-2014||membership of European Monetary Union||currency union CU|
Selected IMF references: RED 1975 pp31 -3, 43; RED 1982 pp31-2, 42-4, 56; RED 1985 pp31-4, 55-8; RED 1988 pp13-16, 35-6; EDSBI 1994 pp16-18.
Additional sources: Houben (2000, especially pp 196-7, 308-9); Beyer et al (2009); Gros and Thygesen (1998, especially pp169-70).
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