Exchange Rate Policy and Macroeconomic Price Stability Analysis

Chinedu A. Okafor , Department of Economics and Management,University of Nigeria, Enugu, Nigeria.
Articles | Open Access

Abstract

Exchange rate policy constitutes an important component of macroeconomic management because movements in the value of a domestic currency can influence import prices, production costs, inflation expectations, external competitiveness, and ultimately overall price stability. This research and review article examines the analytical relationship between exchange rate policy and macroeconomic price stability through a structured conceptual framework. The study adopts a qualitative research-review methodology based on critical examination and thematic interpretation of the references supplied for the study. Particular attention is given to the transmission mechanisms through which exchange-rate decisions may affect domestic price conditions, including import-cost transmission, expectations, external-sector adjustment, and policy credibility. The review also identifies an important limitation in the available evidence base: the supplied literature primarily examines social media marketing and consumer behaviour rather than exchange-rate regimes or macroeconomic inflation dynamics. Consequently, the findings are interpreted as a conceptual framework rather than as statistically validated estimates of exchange-rate effects. The analysis suggests that exchange-rate policy should be evaluated as part of a broader macroeconomic stabilization framework rather than as an isolated instrument. Effective policy requires consistency between exchange-rate management, monetary conditions, inflation expectations, external-sector objectives, and domestic economic fundamentals. The study contributes by identifying the conceptual dimensions required for evaluating exchange-rate policy while highlighting the need for topic-specific empirical research.

Keywords

Exchange Rate Policy, Price Stability, Macroeconomic Stability, , Inflation, Exchange Rate Regimes

References

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How to Cite

Chinedu A. Okafor. (2026). Exchange Rate Policy and Macroeconomic Price Stability Analysis. Frontline Marketing, Management and Economics Journal, 6(10). https://doi.org/10.37547/marketing-fmmej-06-10-08