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Growth, relative prices, and exchange rates

Authors
Journal
Economics Letters
0165-1765
Publisher
Elsevier
Publication Date
Volume
10
Identifiers
DOI: 10.1016/0165-1765(82)90128-8
Disciplines
  • Economics

Abstract

Abstract Using the framework of the monetary (or asset market) approach to the exchange rate it is demonstrated that if growth alters relative prices the growing country's currency may depreciate rather than appreciate as suggested by Mundell.

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