Letter: Secrets of a reliable fixed exchange rate

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Sir: If, as Government spokesmen and many of your commentators suggest, devaluation is always wrong, is revaluation always right? If not, is there one appropriate exchange rate which policy makers can accurately judge that remains correct for long periods? Or is it simply that if you make a mistake in selecting a fixed exchange rate, you must never admit it or the markets will compound the


Yours sincerely,


Head, Economic Research Centre

Plymouth Business School

Plymouth, Devon

12 August