Fixing Exchange Rates: A Virtual Quest for Fundamentals

Robert Flood () and Andrew Rose

No 4503, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Fixed exchange rates are less volatile than floating rates. But the volatility of macroeconomic variables such as money and output does not change very much across exchange rate regimes. 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 tradeoff between reduced exchange rate volatility and macroeconomic stability.

Date: 1993-10
Note: IFM
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Citations: View citations in EconPapers (21)

Published as Journal of Monetary Economics, 1995

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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)
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