Real Exchange Rates and economic development
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 of creation:||1984|
|Date of revision:|
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- Herbert Giersch, 1979.
"Aspects of growth, structural change, and employment A schumpeterian perspective,"
Review of World Economics (Weltwirtschaftliches Archiv),
Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 115(4), pages 629-652, December.
- Giersch, Herbert, 1979. "Aspects of growth, structural change, and employment: A Schumpeterian perspective," Kiel Working Papers 89, Kiel Institute for the World Economy (IfW).
- Giersch, Herbert, 1979. "Aspects of growth, structural change, and employment: A Schumpeterian perspective," Kiel Working Papers 89, Kiel Institute for the World Economy.
- Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821.
- Samuelson, Paul A, 1984. "Second Thoughts on Analytical Income Comparisons," Economic Journal, Royal Economic Society, vol. 94(374), pages 267-78, June.
- Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584.
- Herbert Giersch, 1949. "Economic Union Between Nations and the Location of Industries," Review of Economic Studies, Oxford University Press, vol. 17(2), pages 87-97.
- Mascaro, Angelo & Meltzer, Allan H., 1983. "Long- and short-term interest rates in a risky world," Journal of Monetary Economics, Elsevier, vol. 12(4), pages 485-518, November.
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