Wright, Stephen - In: The Manchester School of Economic & Social Studies 60 (1992) Supplement, June, pp. 63-84
This paper analyzes the role of the real exchange rate in macroeconomic equilibrium. The supply-side equilibrium exchange rate, that level of the real exchange rate at which (relative) inflation is constant, is derived from a simple macro-model and related to the standard "NAIRU" model. The...