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...Journal of economic integration september money supply growth and exchange rate d y n a m i c s jay h levin wayne state university abstract the purpose this paper is to re examine issue dynam ics when central bank undertakes change in original analysis dynamics seminal model o r nbusch assumed that was zero permanently changed stock reality howev er banks typically maintain targets rather than therefore it seems appropriate using as policy instrument analyzes problem variable out put version dornbusch perhaps most significant finding causes either overshoot or undershoot addition real depends inversely on interest during part adjustment process contrast inter est differential jel classification f however for several possible reasons targ e t one long run inflation are concerned with term consequences their actions cyclically expanding economy demand balances increasing will have undertake amount sup ply expansion achieve its short rm goals there p opriate organized following way sectio...