Lahiri, Amartya; Singh, Rajesh; Vegh, Carlos A. - In: Panoeconomicus 54 (2007) 3, pp. 249-270
A famous dictum in open economy macroeconomics - which obtains in the Mundell-Fleming world of sticky prices and perfect capital mobility - holds that the choice of the optimal exchange rate regime should depend on the type of shock hitting the economy. If shocks are predominantly real, a...