Bleaney, Michael F. (contributor); … - 2008
since the
breakdown of the Bretton Woods system: the volatility of real exchange
rates has increased, without any … controlled
by the policymaker, to minimize its loss function.
3.1 Flexible exchange rates
The relationship between in�ation and … exchange rates. If is large, so that real exchange rate volatility
is similar under the two regimes, in�ation and output are …