Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211615 
Year of Publication: 
1991
Series/Report no.: 
Bank of Finland Discussion Papers No. 12/1991
Publisher: 
Bank of Finland, Helsinki
Abstract: 
In this paper the evolution and experiences of exchange rate strategies in Austria and Finland are analyzed. Following Finland's change of emphasis in the 1980's, both countries now use the exchange rate to achieve low inflation. Experience shows that achieving credibility takes time and is not costless. Austria's policy now seems to be fully credible, but the ultimate test for Finnish exchange rate policy is still to come. The exchange rate peg gives some limited independence for fiscal policy, but it needs to secure a sustainable current account in the medium term. Fixing the exchange rate does not imply the import of unemployment from the center country(ies). Finally, the choice of the peg determines the inflation path but not developments in the real economy.
Persistent Identifier of the first edition: 
ISBN: 
951-686-288-8
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.