00571nam a2200085Ia 4500100002200000245003600022260000900058520039900067583001900466  aOBSTFELD, Maurice  aMirage of fixed exchange rates.  c1995  aPuts forward some basic connections between monetary policy and exchange rate.  Is of the view that a fixed exchange rate is very costly for a government to maintain, and suggests that efforts to reform monetary institutions should focus directly on restraining domestic inflation.  The exchange rate should be used as an indicator but virtually never as the central target for monetary policy.  c3/7/00kM2LMGR