Bringing about realistic exchange rates : a post-Asian Financial Crisis perspective

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This chapter argues that both fixed exchange rates and floating exchange rates can lead us to currency crises, as the host currency may be too strong or the floating currency may itself become too strong. What is needed is “realistic exchange rates” that are compatible with full employment and external balance. This chapter attempts to define the concept and to offer a mechanism for approximating realistic exchange rates operationally.
Original languageEnglish
Title of host publicationExchange rate regimes and macroeconomic stability
PublisherKluwer Academic Publishers
Number of pages12
ISBN (Print)9781461353652
Publication statusPublished - 1 Jan 2003

Bibliographical note

Paper presented at the 1st Biennial Conference of the Hong-Kong-Economic-Association, 16-Dec-2000, Hong Kong, China.

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