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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 Sergio Rebelo
Carlos A. Vegh
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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 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.
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Date of creation: Jul 1995Date of revision:
Publication status: published relationship to a non-chapter. This should not happen. Please contact NBER.Handle: RePEc:nbr:nberwo:5197Note: EFG IFMContact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A. Phone: 617-868-3900 Email: Web page: http://www.nber.org More information through EDIRC
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Find related papers by JEL classification: F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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