This article analyses the need for the ECB (or the Fed) to take the exchange rate into consideration while setting its monetary policy. The Central bank does not need to intervene but may send "signals" as to its policy on the foreign exchange market to influence the information set of payers. A game theoretical model is proposed within a finite as well as an infinite horizon framework.
FOURÇANS, A. and WARIN, T. (2001). Euroland Versus the U.S.: Analysis and Framework for Monetary Strategies. In: International Public Policy and Regionalism at the Turn of the Century. 1st ed. Pergamon, pp. 353-369.