Gagnon, Joseph E.; Hinterschweiger, Marc - Peter G. Peterson Institute for International Economics …
the exchange rate play in monetary policy? Why don't volatile exchange rates destabilize inflation and output? The … of a fixed exchange rate regime, leads to greater volatility of employment, output, and inflation. In other words, the … reasons why volatile exchange rates do not destabilize inflation and output. The book concludes that many countries would …