Comment on R. Dornbusch, “The Theory of Flexible Exchange Rate Regimes and Macroeconomic Policy”

  • Stanley Fischer


The paper by Rudiger Dornbusch first sets out a theory of the long run determination of the exchange rate and then discusses a number of issues connected with the operation of flexible exchange rate regimes over a shorter period characterized by expectational errors. Since the paper is admirably lucid, there is little for the discussant to do beyond expressing minor reservations at certain points and emphasizing some aspects of the analysis.


Exchange Rate Flexible Exchange Rate Official Rate Money Stock Domestic Interest Rate 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© The Scandinavian Journal of Economics 1977

Authors and Affiliations

  • Stanley Fischer
    • 1
  1. 1.Massachusetts Institute of TechnologyCambridgeUSA

Personalised recommendations