Abstract
More than a decade of experience with floating exchange rates among the major currencies has led many economists and policy makers to have second thoughts about the presumed advantages of flexible rates. Contrary to the expectations of many of its early advocates, there have been sharp departures of rates from approximate purchasing power parities. The resulting swings in real rates may have increased both the political pressures for protectionism in appreciating-currency countries and inflationary pressures in depreciating-currency ones.1
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© 1987 Donald R. Hodgman and Geoffrey E. Wood
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Coes, D.V. (1987). Exchange Rate Intervention and Imperfect Capital Mobility. In: Hodgman, D.R., Wood, G.E. (eds) Monetary and Exchange Rate Policy. Studies in Banking and International Finance. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-18710-2_4
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DOI: https://doi.org/10.1007/978-1-349-18710-2_4
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