Real Effects of Exchange Rate-Based Stabilization: An Analysis of Competing Theories

Sergio Rebelo () and Carlos Vegh

No 5197, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper uses a unified analytical framework to assess, both qualitatively and quantitatively, the relevance of the different hypotheses that have been proposed to explain the real effects of exchange rate-based stabilizations. The four major hypotheses analyzed are: (i) the supply-side effects associated with an inflation decline; (ii) the perception that the exchange rate peg is temporary; (iii) the fiscal adjustments that tend to accompany the peg; and (iv) the existence of nominal rigidities in wages or prices.

JEL-codes: F41 (search for similar items in EconPapers)
Date: 1995-07
Note: EFG IFM
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Citations: View citations in EconPapers (178)

Published as Bernanke, Ben S. and Julio Rotemberg (eds.) NBER Macroeconomics Annual 1995. Cambridge: MIT Press, 1995.
Published as Real Effects of Exchange-Rate-Based Stabilization: An Analysis of Competing Theories , Sergio Rebelo, Carlos A. Végh. in NBER Macroeconomics Annual 1995, Volume 10 , Bernanke and Rotemberg. 1995

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Related works:
Chapter: Real Effects of Exchange-Rate-Based Stabilization: An Analysis of Competing Theories (1995)
Working Paper: Real Effects of Exchange-Rate-Based Stabilization: An Analysis of Competing Theories (1995)
Working Paper: Real Effects of Exchange-Rate-Based Stabilization: An Analysis of Competing Theories (1995)
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