Comments on Robert Z. Aliber’s Paper ‘Structural Change, Monetary Policy and the Foreign Exchange Value of the Pound’
In these comments on Robert Aliber’s paper it will be argued that ‘overvaluation’, as defined and examined by Robert Aliber, is an erroneous and misleading concept. On the basis of that, his paper is reduced to an examination of the determination of the value of the pound during the period 1976–80. As such he produces evidence which is not based on a rigorous understanding of the theory underlying the determination of exchange rates.
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- 3.G. Cassel (1930) Money and Foreign Exchange After 1919 (London: Macmillan).Google Scholar
- 4.See K. Phylaktis and G. E. Wood (1982) ‘Exchange rate overshooting: a survey’, Annual Monetary Review 3.Google Scholar
- 5.See G. Hacche and J. C. Townend (1981) ‘A broad look at exchange rate movements for eight currencies 1972–1980’, in the Bank of England Quarterly Bulletin (December). The eight currencies examined were the US dollar, the pound, the German mark, the French franc, the yen, the Canadian dollar, Dutch guilder, and the Norwegian krone, for the period 1972:1–1980:4.Google Scholar
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