THE ASSIGNMENT PROBLEM WITH EXCHANGE RATES POLICY

Abstract

We have attempted to formulate a model where new aspects of the assignment problem can be analyzed under a kind of managed flexibility in exchange rates, and have seen
; that the traditional policy assignment calls for a different approach as we depart from the fixed rate system.
; that the step-by-step alteration in the exchange rate as an additional policy brings a wider scope of stabilizing an open economy than the hitherto analyzed framework would provide.
; that some of the Mundellian assignment would not be viable in a new environment.
; that the general assignment, which has not been so far investigated by writers, can be analyzed.
; that the assignment of the adjustment in the exchange rate to the internal balance, which has become the target of criticism, is not always inappropriate.