Styrin, Konstantin; Zamulin, Oleg - Center for Economic and Financial Research (CEFIR), New … - 2012
to movements in the real exchange rate as part of their monetary policies. For many central banks, this variable is the … primary indicator of real activity. At the same time, smoothing the real exchange rate fluctuations has certain inflationary … costs. In a way, this trade-off between inflation and the real exchange rate is identical to a standard Phillips curve. This …