Third, there is an exchange-rate effect: a rise in interest rates pushes up the currency and so squeezes exports.

ECONOMIST: Can one size fit all?

In practice, however, a substantial exchange-rate effect can be expected mainly thanks to the pattern of current-account deficits and surpluses between America and Europe.

ECONOMIST: The international euro | The

On a constant-exchange-rate basis excluding the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 6 percent and same store sales increased 4 percent.

FORBES: Tiffany Worldwide Holiday Sales Up 7% Led by Growth in Asia

On a constant-exchange-rate basis that excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales rose 5 percent, for the period ended Jan. 31, due to growth in all regions and comparable store sales equaled the prior year.

FORBES: Tiffany & Co. Q4 Sales Up 4%

On a constant-exchange-rate basis, which excludes the effect of translating foreign-currency-denominated sales into U.S. dollars, worldwide net sales and comparable store sales increased 16 percent and 15 percent, respectively, the New York-based luxury jewelry retailer said.

FORBES: Tiffany Q1 Sales and Earnings Better than Expected

At the moment, it doesn't appear that the dollar-yuan exchange rate is having an enormously harmful effect on the broad U.S. economy.

FORBES: Magazine Article

Mundell is proposing, in effect, a de facto super-regional currency area by managing the exchange rate between the dollar and the euro through a process of central bank coordination.

FORBES: Mundell's Dollar/Euro Fix Doesn't Fix Our Currency Mess

And such hard exchange-rate regimes do not offer suitable policy instruments for domestic economic management: Argentina's monetary policy was, in effect, made in Washington and was often inappropriate for Argentina's needs.

ECONOMIST: Spoilt for choice | The