Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/47232 
Year of Publication: 
1984
Citation: 
[Publisher:] Institut für Weltwirtschaft (IfW) [Place:] Kiel [Year:] 1984
Series/Report no.: 
Kiel Working Paper No. 218
Publisher: 
Kiel Institute of World Economics (IfW), Kiel
Abstract: 
It is the purpose of this paper to correct some of these shortcomings and to lengthen the time horizon in the public debate about exchange rates, notably about the dollar/DM rate. Long-term interest rates, most of all the real rate of interest and the profitability of investment, will be brought into focus. The hypothesis emerging from this paper is that the dollar is likely to remain strong for fundamental reasons, i.e. for reasons rooted in the real sectors of the American and European economies. Temporary declines for short-term reasons are, of course, not excluded. They should, therefore, not be viewed as disproving the central thesis: what matters in the longer run are the vitality of an economy and its place and role in world economic development.
Document Type: 
Working Paper
Document Version: 
Digitized Version

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