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Fixing Exchange Rates: A Virtual Quest for Fundamentals
Research Department, IMF.
University of California, Berkeley.
1992 (English)Report (Other academic)
Abstract [en]

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.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 529
Keyword [en]
structural, traditional, volatility, monetary, fixed, floating, regime
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41847OAI: oai:DiVA.org:su-41847DiVA: diva2:337960
Note
Published in connection with a visit at the IIES.Available from: 2010-08-10 Created: 2010-08-10 Last updated: 2010-08-10

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