TY  - BOOK
AU  - Stockman,Alan C.
ED  - National Bureau of Economic Research.
TI  - Real Exchange Rate Variability under Pegged and Floating Nominal        Exchange Rate Systems: An Equilibrium Theory 
T2  - NBER working paper series
PY  - 1988///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - April 1988; Hardcopy version available to institutional subscribers
N2  - This paper proposes a new explanation for the greater variability of real exchange rates under pegged than under floating nominal exchange rate systems. The explanation hinges on the propensity of governments to use international trade restrictions and financial restrictions for balance-of-payments purposes under pegged exchange rates. In particular. these restrictions become more likely during periods of time when countries suffer losses of international reserves than might. without policy changes. lead to a balance-of-payments crisis. This covariation of restrictions with reserve changes implies that real exchange rates will vary less under pegged than under floating exchange rates
UR  - https://www.nber.org/papers/w2565
UR  - http://dx.doi.org/10.3386/w2565
ER  -