Exchange Rate Rules and Macroeconomic Stability

  • Rudiger Dornbusch


This paper discusses exchange rate rules in their role as macroeconomic instruments. We abstract throughout from the trend part of exchange rate behaviour — a crawling peg necessitated by differences in trend inflation — and emphasise instead the implications of exchange rate rules in providing flexibility of real wages or in affecting the stability of output or prices.


Exchange Rate Real Exchange Rate Real Wage Trade Balance Relative Prex 
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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Limited 1981

Authors and Affiliations

  • Rudiger Dornbusch

There are no affiliations available

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