Real exchange rates: some evidence from the postwar years. (Dimensions of Monetary Policy: Essays in Honor of Anatol B. Balbach)

From: Federal Reserve Bank of St. Louis Review | Date: March 1, 1993| Author: Meltzer, Allan H. | Copyright information

Flexible exchange rates are analyzed. Milton Friedman's landmark 1953 paper is found to be less generalistic than reputed when concerning flexible exchange rates. The study also compares the variability of exchange rates and related elements under flexible and fixed rates. Moreover, a model of the so-called real exchange rate is investigated assuming both Bretton Woods and flexible rates, while the impact of economic aggregates on the model is determined. However, the study's results are limi...

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