Use the latest browser recommended by Microsoft
Get speed, security and privacy with Microsoft Edge
The Commonwealth Secretariat led off the discussion with a framework for exchange rate management. It was necessary to manage exchange rates: (a) because floating among major currencies might impose misalignments (b) so that exchange rates can be used to compensate for inflation differentials, though devaluation may cause inflation and discourage investments, and (c) to compensate for exchange rate shocks arising from terms of trade changes, capital outflows or dramatic changes in output. (Previous title: Collection of unpublished research papers. Port-of-Spain, Trinidad & Tobago, January 12-14, 1988)