Was Dornbusch's work too theoretical?
Some might say my models were 'too theoretical,' but I always saw them as tools to grapple with real-world policy dilemmas. The overshooting model, for instance, was born from observing the volatility of exchange rates in the 1970s. My goal wasn't to build elegant mathematical structures for their own sake, but to provide a framework for understanding why certain policies fail or succeed, and what the consequences of misjudgments could be for economies.
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