Macroeconomic Implications of Real Exchange Rate Targeting in Developing Countries

1991 ◽  
Author(s):  
Peter J. Montiel ◽  
Jonathan D. Ostry
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Exchange Rate Targeting ◽  
Macroeconomic Implications

Real exchange rate targeting

2016 ◽  
pp. 44-65 ◽  
Author(s):  
S. Moiseev ◽  
I. Pantina
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Real Exchange Rate ◽  
Economic Literature ◽  
Theoretical Frameworks ◽  
The Real ◽  
Inflation Bias ◽  
Exchange Rate Targeting ◽  
High Degree

Developing countries typically exhibit a high degree of macroeconomic variablesinstability. This feature is particularly evident as regards the volatility of the real exchange rate. The concern with these destabilizing effects generatedby real exchange rate instability has prompted some developing countries to adopt real exchange rate targeting since the late 60’s. However, this policy produces an inflation bias. This paper reviews economic literature on theoretical frameworks and empirical evidences about effects of real exchange rate targeting.

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