The Exchange Rate in a Dynamic-Optimizing Current Account Model with Nominal Rigidities: A Quantitative Investigation

Kollman, R.

The Exchange Rate in a Dynamic-Optimizing Current Account Model with Nominal Rigidities: A Quantitative Investigation

R. Kollman
Authors registered in the RePEc Author Service: Robert Kollmann ()

Cahiers de recherche from Centre interuniversitaire de recherche en Ã©conomie quantitative, CIREQ

Abstract: This paper studies a dynamic-optimizing model of a semi-small open economy with sticky nominal prices and wages. The model exhibits exchange rate overshooting in response to money supply shocks. The predicted variability of nominal and real exchange rates is roughly consistent with that of G7 effective exchange rates during the post-Bretton Woods era.

Keywords: BUSINESS CYCLES; EXCHANGE RATE; BALANCE OF PAYMENTS; FINANCIAL MARKET (search for similar items in EconPapers)
JEL-codes: E30 E32 F30 F31 (search for similar items in EconPapers)
Pages: 52 pages
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (88)

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

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

Persistent link: https://EconPapers.repec.org/RePEc:mtl:montec:9614

Access Statistics for this paper

More papers in Cahiers de recherche from Centre interuniversitaire de recherche en Ã©conomie quantitative, CIREQ Contact information at EDIRC.
Bibliographic data for series maintained by Sharon BREWER ().