Setting the Stage

Richard Friberg
Additional contact information
Richard Friberg: Stockholm School of Economics

Chapter 2 in Exchange Rates and the Firm, 1999, pp 9-19 from Palgrave Macmillan

Abstract: Abstract A floating exchange rate typically exhibits wild gyrations. Let us illustrate with a few examples. During the period from 1 August 1997 to 30 March 1998 the yen weakened by some 12 percent against the US dollar. During the same period the Swiss franc weakened by some 5 percent against the Canadian dollar. Exchange rates also exhibit pretty radical swings over longer time periods. From 1 August 1996 until the end of March 1998 the British pound had strengthened by more than 25 percent against the D-mark. The classic example of a massive shift in exchange rates is the path of the dollar. From February 1985 to January 1988 the US dollar price of D-marks and yen more than doubled. These gains and losses are typically no smooth process, rather they take place in leaps and bounds. Figure 2.1 exemplifies with the exchange rate between British pounds and US dollars between August 1993 and March 1998.

Keywords: Exchange Rate; Random Walk; Real Exchange Rate; Foreign Currency; Nominal Exchange Rate (search for similar items in EconPapers)
Date: 1999
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:palchp:978-0-333-98237-2_2

Ordering information: This item can be ordered from
http://www.palgrave.com/9780333982372

DOI: 10.1057/9780333982372_2

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().