Equipment used by deciduous fruit growers in handling bulk boxes / by J.H. Levin and H.P. Gaston

Non‐sterilization, Pegged Exchange Rates, and Stabilization Policy

“…(5) I have shown elsewhere [9] that, for a very small country that is part of a jointly floating currency area, the comparative static effects of monetary and fiscal policy under conditions of perfect capital mobility are identical to those under a fixed exchange rate system. For any exchange rate movement triggered by the small country's stabilization policies will affect the rest of the currency area but not the home country because of its negligible relative size.…”