franc fort

Show Summary Details

Quick Reference

The policy of using the foreign exchange rate as an inflation anchor. This policy sought to control inflation by tying the currency to that of a country with an established reputation for low inflation. The franc fort (strong franc) policy was followed in the 1980s and early 1990s by both France and Belgium, who attempted to restrain inflationary expectations by linking their currencies to the German Deutschmark.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.