Tassi di cambio fluttuanti, deprezzamento valutario e domanda effettiva

This paper examines the relative advantages of floating exchange rates against a system of exchange rates for the same rigidly anchored (hard peg), with particular emphasis on the implications for effective demand. In particular, it will assess whether a currency depreciation has a beneficial effect on aggregate demand and hence employment. It is argued that this issue is central to the principle of effective demand, and that the idea that a currency depreciation is able to stabilize the effective demand, is equivalent to a large extent to support that flexibility (down) in nominal wages (and real) to ensure full employment. Consistent with this, we analyze the relationship between the downward flexibility of wages and effective demand, and is critically evaluated (in terms of both theoretical and empirical) hypothesis that the flexibility of the exchange rate can have stabilizing properties when account is taken of external shocks of varying nature. The article closes with brief conclusions of economic theory and policy.