Bringing about realistic exchange rates : a post-Asian Financial Crisis perspective

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Book chapter

Source Publication

Exchange rate regimes and macroeconomic stability

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First Page


Last Page



Kluwer Academic Publishers


This chapter argues that both fixed exchange rates and floating exchange rates can lead us to currency crises, as the host currency may be too strong or the floating currency may itself become too strong. What is needed is “realistic exchange rates” that are compatible with full employment and external balance. This chapter attempts to define the concept and to offer a mechanism for approximating realistic exchange rates operationally.



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Additional Information

ISBN of the source publication: 9781461353652

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Recommended Citation

Ho, L. S. (2003). Bringing about realistic exchange rates: A post-Asian financial crisis perspective. In L. S. Ho & C. H. Yuen (Eds.), Exchange rate regimes and macroeconomic stability (pp. 133-144). Boston: Kluwer Academic Publishers.