Fixing Exchange Rates: A Virtual Quest for Fundamentals

Robert Flood () and Andrew Rose

No 838, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Fixed exchange rates are less volatile than floating rates. The volatility of macroeconomic variables, such as money and output, does not change very much across exchange rate regimes, however. 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 trade-off between reduced exchange rate volatility and macroeconomic stability.

Keywords: Exchange Rates; Fixed; Floating; Monetary; Regime; Structural; Traditional; Volatility (search for similar items in EconPapers)
JEL-codes: F31 F33 (search for similar items in EconPapers)
Date: 1993-09
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=838 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Fixing exchange rates A virtual quest for fundamentals (1995)
Working Paper: Fixing Exchange Rates: A Virtual Quest for Fundamentals (1993)
Working Paper: Fixing Exchange Rates: A Virtual Quest for Fundamentals (1992)
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:cpr:ceprdp:838

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=838

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().