Real Exchange Rates and economic development

Herbert Giersch

No 218, Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: It is the purpose of this paper to correct some of these shortcomings and to lengthen the time horizon in the public debate about exchange rates, notably about the dollar/DM rate. Long-term interest rates, most of all the real rate of interest and the profitability of investment, will be brought into focus. The hypothesis emerging from this paper is that the dollar is likely to remain strong for fundamental reasons, i.e. for reasons rooted in the real sectors of the American and European economies. Temporary declines for short-term reasons are, of course, not excluded. They should, therefore, not be viewed as disproving the central thesis: what matters in the longer run are the vitality of an economy and its place and role in world economic development.

Date: 1984
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/47232/1/016457242.pdf (application/pdf)

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:zbw:ifwkwp:218

Access Statistics for this paper

More papers in Kiel Working Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().