Series: IMF Working Papers
Author(s): Masahiro Kawai
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 1992
Keywords: exchange rate, exchange rate regime, inflation, money supply
This paper examines the question of how to design an optimal and sustainable exchange rate regime in a world economy of two interdependent countries. It develops a Barro-Gordon type two-country model and compares n...