Case | HBS Case Collection | July 1991

Managing the U.S. Dollar in the 1980s

by W. Carl Kester and Richard P. Melnick


Provides numerical data and alternative explanations concerning the U.S. dollar's rise and subsequent fall in value from 1981 through 1987. Students are challenged to study the evidence and make their own inferences concerning the dollar's movements and the degree of its mispricing. Introduces students to competing theories of exchange rate determination and the analysis of macroeconomic data pertinent to the pricing of foreign exchange.

Keywords: Macroeconomics; Currency Exchange Rate; Price; Theory; United States;


Kester, W. Carl, and Richard P. Melnick. "Managing the U.S. Dollar in the 1980s." Harvard Business School Case 292-001, July 1991.