Through the use of alternative approaches these two papers come to different conclusions on the fixed versus floating exchange rate debate in 1980. Laidler presents a pragmatic and persuasive case for floating rates without stating the positive merits of the fixed rate alternative, while Sumner and Zis present a useful survey of the theoretical literature on the relationships between exchange rates and inflation, and by rectifying certain faults of the literature conclude that floating rates exhibit an inflation bias.
KeywordsExchange Rate Monetary Policy European Monetary Bretton Wood System Currency Basket
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