Shocks and the Viability of a Fixed Exchange Rate Commitment
β Scribed by Torben M. Andersen
- Book ID
- 110260232
- Publisher
- Springer US
- Year
- 1998
- Tongue
- English
- Weight
- 216 KB
- Volume
- 9
- Category
- Article
- ISSN
- 0923-7992
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
## Abstract This paper investigates the price and output stabilization properties of fixed and floating exchange rates using a small open economy model. The performance of the two regimes is compared in the face of money demand, aggregate demand and aggregate supply shocks. It is shown that the ran
A core stylized fact of the empirical exchange rate literature is that half-life deviations of equilibrium real exchange rates from levels implied by Purchasing Power Parity (PPP) are very persistent. Empirical efforts to explain this persistence typically proceed along two distinct paths, resorting