Fixing Exchange Rates: A Virtual Quest for Fundamentals
1992 (English)Report (Other academic)
Fixed exchange rates are less volatile than floating rates. But the volatility of macroeconomic variables such as money and output does not change very much across exchange rate regimes. This suggests that exchange rate models based only on macroeconomic fundamentals are unlikely to be very successful. It also suggests that there is no clear tradeoff between reduced exchange rate volatility and macreconomic stability.
Place, publisher, year, edition, pages
Stockholm: IIES , 1992. , 38 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 529
structural, traditional, volatility, monetary, fixed, floating, regime
IdentifiersURN: urn:nbn:se:su:diva-41847OAI: oai:DiVA.org:su-41847DiVA: diva2:337960
Published in connection with a visit at the IIES.2010-08-102010-08-102010-08-10