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Real Effects of Exchange-Rate-Based Stabilization: An Analysis of Competing Theories Author info | Abstract | Publisher info | Download info | Related research | Statistics Rebelo, Sérgio
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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 analysed 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.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
1220.
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Date of creation: Aug 1995Date of revision:
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Keywords: Fixed Exchange Rates Inflation Stabilization Other versions of this item:
Find related papers by JEL classification: F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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