Abstract: The authors pursue a number of aims. They begin by placing monetary policy within the wider framework of general economic policy. They continue by examining the domestic role of monetary policy and how they see it developing in the future. This is followed by a discussion specifically on exchange rates, which the authors see as the major area of importance for monetary policy. The chapter concludes with a brief discussion of the mix between monetary and fiscal policy.

Keywords: exchange rate, fiscal policy, general economic policy, interest rates, monetary policy,