Mohanty, Biswajit; Bhanumurthy, N.R. - In: International Economic Journal 28 (2014) 2, pp. 311-332
Exchange rate stability is crucial for inflation management as a stable rate is expected to reduce domestic inflation pressures through a 'policy discipline effect' - restricting money supply growth, and a 'credibility effect' - inducing higher money demand and reduced velocity of money....