A Perspective

نویسنده

  • Adrian Pagan
چکیده

A persistent issue surfacing throughout the Conference was whether or not economic research had supplied any useful guide to the factors determining the exchange rate. Paul Krugman was very pessimistic on this score, whereas BlundellWignall, Fahrer and Heath (BWFH) were optimistic. From the nature of the discussion it was clear that such a relationship is desirable, as it can serve both as an anchor for markets and a signal to central banks when an exchange rate is ‘getting out of line’. This idea surfaced under many guises Ken Clements felt that purchasing power parity (PPP) fitted the bill, while Mike Artis emphasised the fundamental equilibrium exchange rate (FEER), or the desirable equilibrium exchange rate (DEER), using these latter concepts to explain some of the adjustments occurring in the European Monetary System (EMS) in September 1992.

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تاریخ انتشار 1998