Real Exchange Rate Targeting under Imperfect Asset Substitutability

J. Saul Lizondo
Additional contact information
J. Saul Lizondo: International Monetary Fund

IMF Staff Papers, 1993, vol. 40, issue 4, 829-851

Abstract: This paper presents a model of an economy that uses nominal exchange rate policy to keep the real exchange rate constant at a certain target level, under an assumption of imperfect asset substitutability. The paper discusses the determinants of inflation under such a policy and examines the effects of exogenous and policy-induced shocks on inflation, the external accounts, and the fiscal accounts. The shocks considered include changes in the real exchange rate target, changes in fiscal policy, changes in foreign interest rates, and open market sales of public sector domestic bonds.

JEL-codes: E52 E61 F31 F41 (search for similar items in EconPapers)
Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.jstor.org/stable/3867612?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:40:y:1993:i:4:p:829-851

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().