Quarterly Journal of Austrian Economics
Author:
Bogdan Glăvan
Online Publish Date:
Volume 8, No. 3 (Fall 2005) The aim of this paper is to criticize the foundation and the relevance of the insulation argument. In what follows, I will attempt to show that: (1) The favor flexible exchange rates enjoy in the literature is in part a result of the confusion between devaluation and free exchange rates; (2) Asymmetric shocks cannot