Currency Management and Economic Stability

Slobodan Djajic

Working Paper from Economics Department, Queen's University

Abstract: This paper considers the effects of an increase in the foreign interest rate on a small open economy with indexed wages and sticky prices. It is shown that currency market interventions helps reduce fluctuations in inflation and unemployment, as well as the exchange rate. Complete insulation, however, requires intervention both in the good and asset markets.

Pages: 20
Date: 1981
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:qed:wpaper:428

Access Statistics for this paper

More papers in Working Paper from Economics Department, Queen's University Contact information at EDIRC.
Bibliographic data for series maintained by Mark Babcock ().