00600nam a2200097Ia 450000500170000010000220001724500360003926000090007552003990008458300190048320260716043332.0  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