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Exchange Rate Policy: Is this where we came in?
Author(s) -
BUDD ALAN
Publication year - 1988
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1988.tb00405.x
Subject(s) - exchange rate , economics , simple (philosophy) , relevance (law) , monetary policy , set (abstract data type) , ceiling (cloud) , recall rate , keynesian economics , monetary economics , law , political science , computer science , philosophy , epistemology , physics , artificial intelligence , meteorology , programming language
In the second issue of Economic Outlook (April 1977) we published an article entitled “Why the exchange rate must be set free”. In this Viewpoint we recall the arguments we presented then and consider their relevance to the present debate about exchange rate policy. We conclude that circumstances now are rather different from those in 1977 and that the choice between monetary targeting and exchange rate targeting is not as simple as it appeared then. Nevertheless we do believe that in the circumstances of recent month it was correct to let the exchange rate rise above its unofficial “ceiling” of DM3 rather than to pursue a specific exchange rate target.