1977 | OriginalPaper | Buchkapitel
Inflation and the Exchange Rate Regime
verfasst von : W. Max Corden
Erschienen in: Flexible Exchange Rates and Stabilization Policy
Verlag: Palgrave Macmillan UK
Enthalten in: Professional Book Archive
Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.
Wählen Sie Textabschnitte aus um mit Künstlicher Intelligenz passenden Patente zu finden. powered by
Markieren Sie Textabschnitte, um KI-gestützt weitere passende Inhalte zu finden. powered by
Is a regime of fixed or of flexible rates more conducive to inflation? In a flexible rate regime the authorities of each country can choose whatever rate of inflation they wish. In the fixed rate system countries can depart from the world rate of inflation by running payments imbalances and will trade-off the costs of accommodating borrowing or lending against the benefits from getting closer to their desired inflation rates; inflation rates are then determined in a general equilibrium system where countries “trade” their surpluses and deficits. “Inflation-prone” countries are distinguished from the “inflation-shy”. Account is also taken of the special case of the reserve currency country.