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Although inflation performance is generally better under pegged exchange rates, the last panel in Chart 1 ... international trade. Advocates argue that pegged exchange rates foster investment by ...

consider a hypothetical trade setup as follows. Imagine you are analyzing the EUR/USD currency pair’s exchange rate chart, and you notice an ascending triangle forming during an ongoing uptrend.

Although this issue has not received much empirical attention, there is almost certainly a short-run trade-off between the real exchange rate and inflation, analogous to the Phillips curve, that would ...