 Fixed versus Flexible Exchange Rates in 1995Alberto Giovannini
Chapter 8 in Contemporary Economic Issues, 1998, pp 182-193 from Palgrave Macmillan Abstract: Abstract Economists’ ignorance on the question of alternative exchange rate regimes can never be overstated. Our lack of knowledge of the economic effects of monetary regimes, or of money in general, is the main reason why the debate on monetary issues, and the relative merits of fixed versus flexible exchange rates, is often so enthralling. Because technicians cannot provide the definitive answer on many important questions about monetary policy, the debate on the choices of monetary authorities often becomes the preferred ground of politicians, newspaper editorialists and, to use a term coined by Paul Krugman (1994), policy entrepreneurs. Sometimes, in the most spectacular cases, exchange-rate and monetary issues are blown up out of proportion to become great national issues. The case of the European Monetary Union (EMU) is a good illustration of this: the drama around it rarely touches on the economic effects of the adoption of a single currency in Europe. Keywords: Exchange Rate; Monetary Policy; Central Bank; Real Exchange Rate; European Monetary Union (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-26084-3_8 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-26084-3_8 Access Statistics for this chapter More chapters in International Economic Association Series from Palgrave Macmillan |
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