Exchange Rate Protection and Exchange Rate Conflict

Christopher J.E. Bliss () and Vijay Joshi

Oxford Economic Papers, 1988, vol. 40, issue 2, pages 365-77

Abstract: This paper investigates a model of "exchange rate protection" with two countries, either or both of then seeking to protect their tradable sectors by maintaining undervalued exchange rates. The equilibrium that would result is demonstrated and shown to be inefficient, suggesting that, in principle, countries which seek to use the exchange rate as a protectionist device would gain by cooperation. A more general model is also considered in which countries may wish to antiprotect their tradable sectors by maintaining overvalued exchange rates. The models may throw light on recent episodes of undervaluation and overvaluation of major currencies. Copyright 1988 by Royal Economic Society.

Date: 1988
View citations in EconPapers

Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819880 ... 0.CO%3B2-K&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
Working Paper: Exchange Rate Protection and Exchange Rate Conflict (1987)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:oup:oxecpp:v:40:y:1988:i:2:p:365-77

Ordering information: This journal article can be ordered from
http://www.oup.co.uk/journals

Access Statistics for this article

Oxford Economic Papers is edited by A. Banerjee and James Forder

More articles in Oxford Economic Papers from Oxford University Press
Address: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Series data maintained by Christopher F. Baum ().