Many Argentines believe that the IMF, having been criticised for backing the fixed exchange rate long past its useful life, was slower and sterner with Mr Duhalde than with his predecessors.

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The long-term chart of the exchange rate shows that it is barely a blip, as the long-term downtrend (line a) goes back to 1976, when the rate was 305 yen per dollar.

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In the long term, living with a fixed exchange rate demands wage and price flexibility.

ECONOMIST: Exchange rates

He pointed out that the exchange rate remained near its long-term average, and made a statement of the obvious: that the level of the euro could affect both euro-zone inflation and growth.

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The long-term chart of the euro-dollar exchange rate shows a series of lower highs since 2007 (line c).

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For example, the Goldman Sachs monetary-conditions index (based on a weighted average of short-and long-term interest rates and the trade-weighted exchange rate) suggests that America's monetary policy is currently at its tightest since 1989, largely reflecting the strong dollar.

ECONOMIST: The stockmarket economy

Mr Gourinchas doubts that depressing the exchange rate could sustain a high rate of saving for long.

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If the exchange rate and share prices remain unchanged, this requires both short- and long-term interest rates to rise by just under 1.5 percentage points.

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