01752cas a2200241 a 4500 AALejournalIMF008452 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451855517 1018-5941 BD-DhAAL BD-DhAAL Klyuev, Vladimir. The Distributional Consequences of Real Exchange Rate Adjustment / Vladimir Klyuev. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper focuses on distributional consequences of macroeconomic adjustment. The preferences of economic agents over the level of the real exchange rate derived from standard models are monotonic, with agents favoring either an infinitely appreciated or depreciated rate. To generate less extreme preferences, a model is presented where appreciation would depress economic activity, while a large depreciation would hit the tradable sector by limiting the availability of labor, offsetting the favorable price effect. The model is in the spirit of the dependent economy model, but built on explicit microfoundations. The results can be used to analyze political economy aspects of macroeconomic adjustment. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/133 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/133/001.2003.issue-133-en.xml IMF e-Library