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Exchange rate policy under sovereign default risk

✍ Scribed by Andreas Schabert


Book ID
116422910
Publisher
Elsevier Science
Year
2011
Tongue
English
Weight
192 KB
Volume
112
Category
Article
ISSN
0165-1765

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This paper considers optimal monetary stabilization policy under flexible exchange rates in a model where exchange rate expectations are generated regressively. The analysis highlights the intimate relationship that exists between: (a) the direction of the optimal monetary feedback rule, (b) the amo