Economic Adjustment and Exchange Rates in Developing Countries

Hardcover (Print)
Buy New
Buy New from
Used and New from Other Sellers
Used and New from Other Sellers
from $5.49
Usually ships in 1-2 business days
(Save 94%)
Other sellers (Hardcover)
  • All (10) from $5.49   
  • New (4) from $64.05   
  • Used (6) from $5.49   


In spite of the attention paid exchange rates in recent economic debates on developing countries, relatively few studies have systematically analyzed in detail the various ramifications of exchange rate policy in these countries. In this new volume from the National Bureau of Economic Research, leading economists use rigorous models to tackle various exchange rate issues, while also illuminating policy implications that emerge from their analyses.

The volume, divided into four main sections, addresses: the role of exchange rates in stabilization programs and the adjustment process; the importance of exchange rate policy during liberalization reform in developing countries; exchange rate problems relevant and unique to developing countries, illustrated by case studies; and the problems defining, measuring, and identifying determinants of real exchange rates. Authors of individual papers examine the relation between commercial policies and exchange rates, the role of exchange rate policy in stabilization programs, the effectiveness of devaluations as a policy tool, and the interaction between exchange rate terms of trade an capital flow. This research will not only prove crucial to our understanding of the role of exchange rates in developing countries, but will clearly set the standard for future work in the field.

Read More Show Less

Product Details

Meet the Author

Sebastian Edwards is associate professor of economics at the University of California, Los Angeles. Liaquat Ahamed is senior investment officer at the World Bank.

Read More Show Less

Table of Contents

Introduction by Sebastian Edwards and Liaquat Ahamed
I. Stabilization, Adjustment, and Exchange Rate Policy in Developing Countries
1. Exchange Rate Management and Stabilization Policies in Developing Countries
Sweder van Wijnbergen
Comment: James A. Hanson
2. The Effects of Commercial, Fiscal, Monetary, and Exchange Rate Policies on the Real Exchange Rate
Michael Mussa
Comment: Jeffrey A. Frankel
Comment: Kathie L. Krumm
3. Wage Indexation, Supply Shocks, and Monetary Policy in a Small, Open Economy
Joshua Aizenman and Jacob A. Frenkel
Comment: Stanley Fischer
Comment: Constantino Lluch
4. Multiple Exchange Rates for Commercial Transactions
Rudiger Dornbusch
Comment: Manuel Guitián
Comment: Richard C. Marston
II. Economic Reform, Foreign Shocks, and Exchange Rates
5. Welfare, Banks, and Capital Mobility in Steady State: The Case of Predetermined Exchange Rates
Guillermo A. Calvo
Comment: Mario I. Blejer
6. Capital Flows, the Current Account, and the Real Exchange Rate: The Consequences of Stabilization and Liberalization
Maurice Obstfeld
Comment: Marcelo Selowsky
III. Case Studies
7. Commodity Export Prices and the Real Exchange Rate in Developing Countries: Coffee in Colombia
Sebastian Edwards
Comment: Sarath Rajapatirana
Comment: Armeane Choksi
8. Stabilization, Stagflation, and Investment Incentives: The Case of Kenya, 1979-1980
William H. Branson
Comment: Jacques R. Artus
Comment: Ravi Gulhati
9. Discrete Devaluation as a Signal to Price Setters: Suggested Evidence from Greece
Louka T. Katseli
Comment: Stanley W. Black
Comment: John Williamson
10. Collective Pegging to a Single Currency: The West African Monetary Union
Jorge Braga de Macedo
Comment: Liaquat Ahamed
Comment: Stephen O'Brien
IV. Economic Adjustment and the Real Exchange Rate
11. Economic Adjustment and the Real Exchange Rate
Arnold C. Harberger
Comment: Carlos Díaz-Alejandro
Comment: Mohsin S. Khan
List of Contributors
Author Index
Subject Index

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star


4 Star


3 Star


2 Star


1 Star


Your Rating:

Your Name: Create a Pen Name or

Barnes & Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation


  • - By submitting a review, you grant to Barnes & and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Terms of Use.
  • - Barnes & reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)