Heterogeneity of Agents, Transactions Costs and the Exchange Rate

Paul De Grauwe and Marianna Grimaldi

Chapter 2 in Exchange Rates and Global Financial Policies, 2014, pp 33-70 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The following sections are included:IntroductionA Simple Non-Linear Exchange Rate ModelThe Model with Transactions CostsSolution of the ModelSensitivity AnalysisThe Stochastic Version of the ModelThe Effect of Permanent ShocksEmpirical Relevance of the ModelIs Chartism Evolutionary Stable?ConclusionAppendix 1: Diagnosis of GARCH Structure in the Simulated Exchange Rate ReturnsReferences

Keywords: Exchange Rate; Financial Policies; Turbulence; Exchange Market; Motenary Union; Macroeconomics; Economic Models; Behaviorial Economics; Monetary Integration; Euro; Financial Crisis; European Monetary Policy; Dynamic Stochastic General Equilibriumauthor (search for similar items in EconPapers)
Date: 2014
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Journal Article: Heterogeneity of agents, transactions costs and the exchange rate (2005)
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