normative

Don't Target The Exchange Rate

Because exchange rates contain so much noise, policymakers should not look at the exchange rate when setting policy but at inflation and output; trying to target the exchange rate is a fool's game, and if the Trump administration tries it, any success would be pure luck.

normativepending

Speaker

Kenneth Rogoff

Evidence Quote

I think the policy conclusions people drew out of that is, don’t look at the exchange rate. When you’re trying to figure out what policy should be, look at inflation rate, look at output.

Source

Kenneth RogoffConversations with Tyler
Created: 6/13/2026, 3:28:48 AM

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