TY  - JOUR
AU  - Rebelo,Sergio
AU  - Vegh,Carlos A.
TI  - Real Effects of Exchange Rate-Based Stabilization: An Analysis of Competing Theories
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5197
PY  - 1995
Y2  - July 1995
UR  - http://www.nber.org/papers/w5197
L1  - http://www.nber.org/papers/w5197.pdf
N1  - Author contact info:
Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu

Carlos A. Vegh
Department of Economics
Tydings Hall, Office 4118G
University of Maryland
College Park, MD 20742-7211
Tel: 301-405-3546
Fax: 301-405-3542
E-Mail: vegh@econ.bsos.umd.edu
M1  - published as Sergio Rebelo, Carlos A. Vegh. "Real Effects of Exchange-Rate-Based Stabilization: An Analysis of Competing Theories," in Ben S. Bernanke and Julio J. Rotemberg, eds., "NBER Macroeconomics Annual 1995, Volume 10" MIT Press (1995)

AB  - This paper uses a unified analytical framework to assess, both qualitatively and quantitatively, the relevance of the different hypotheses that have been proposed to explain the real effects of exchange rate-based stabilizations.  The four major hypotheses analyzed are: (i) the supply-side effects associated with an inflation decline; (ii) the perception that the exchange rate peg is temporary; (iii) the fiscal adjustments that tend to accompany the peg; and (iv) the existence of nominal rigidities in wages or prices.
ER  -