Originally published in 1997. This study investigates what the effects of real exchange rate volatility are on sectorial investment in the fixed and flexible exchange rate systems. It lays out the results of research into the effects of the levels and volatility of real exchange rates on investment in the manufacturing sectors of the countries in the European Monetary System as well as of the countries in the flexible exchange rate system, with data from between 1973 and 1993. Examining the differences between the two systems in the results this book also looks at exchange rate effects on interest rates at the time.

part |136 pages

The Effects of Real Exchange Rate Volatility on Sectoral Investment

chapter I|6 pages


chapter II|32 pages

Survey of the Literature

chapter III|25 pages


chapter IV|14 pages

Description of the Data

chapter V|36 pages

Empirical Results and Implications

chapter VII|4 pages

Summary and Conclusions