Exchange rate-based stabilization. Pleasant monetary dynamics?

Wehinger, Gert D. (1997) Exchange rate-based stabilization. Pleasant monetary dynamics? Department of Economics Working Paper Series, 50. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.


Download (1MB)


High inflation economies have ultimately been successful in stabilising their prices using the exchange rate as a nominal anchor. Besides stabilization, these recent examples have shown boom-recession cycles, contrary to what can be expected from (pure) money-based stabilizations. Various theoretical explanations of such boom-cycles are discussed and a model of aggregate supply and demand generating such an outcome is developed. There the boom dynamics depend mainly on a slump in real interest rates and wage flexibility. (author's abstract)

Item Type: Paper
Keywords: macroeconomic modelling / exchange rate-based stabilization / high inflation / Latin America
Classification Codes: JEL E10, E31, E52, E63
Divisions: Departments > Volkswirtschaft
Depositing User: Repository Administrator
Date Deposited: 01 Mar 2002 11:48
Last Modified: 22 Oct 2019 00:41


View Item View Item


Downloads per month over past year

View more statistics