Editorial
On April 19–20, 2001, the Oesterreichische Nationalbank sponsored a Workshop organized by Richard Clarida (Columbia University), Helmut Frisch (TU Wien) and Eduard Hochreiter (OeNB) on “Exchange Rate and Monetary Policy Issues”. It took place at the Institute for Advanced Studies, Vienna. A number of papers presented at this workshop is being made available to a broader audience in the Working Paper series of the Bank. This volume contains the eighth of these papers. The first ones were issued as OeNB Working Papers No. 44, 46, 47 and 50 to 53. The paper by Tommaso Monacelli is followed by discussions by Sven W. Arndt (p. 29ff.) and by Frank Smets (p. 35 ff.).