EconPapers    
Economics at your fingertips  
 

On the limits of real exchange-rate targeting under foreign exchange constraint

Bastian Eduardo F.

Chapter 6 in Foreign Exchange Constraint and Developing Economies, 2023, pp 124-148 from Edward Elgar Publishing

Abstract: This chapter develops a simple neo-Kaleckian open economy framework to analyse the short-term limits of real exchange rate targeting in a country facing foreign exchange constraint. For this purpose, it evaluates different policies and shocks, namely progressive wage policies, public consumption increases, terms of trade shocks and industrial policies. It shows that real exchange rate targeting under foreign exchange constraint limits real wage increases in the short term. Changes in this situation depend on good luck in the form of positive terms of trade shocks and/or good policy by means of industrial policies.

Keywords: Development Studies; Economics and Finance; Politics and Public Policy (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800880504/9781800880504.00014.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
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: https://EconPapers.repec.org/RePEc:elg:eechap:20432_6

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().

 
Page updated 2024-06-19
Handle: RePEc:elg:eechap:20432_6