Author: Ki Young ChungPublisher:
ISBN:
Category :
Languages : en
Pages : 298
Book Description
An Essay on the Intertemporal General Equilibrium Model of Exchange Rates in a Continuous-time Version
Author: Ki Young ChungExchange Rate Dynamics in an Intertemporal General Equilibrium Model with Normal Rigidities, Imperfect Competition, and Investments
Author: Allan Bødskov AndersenPublisher:
ISBN:
Category :
Languages : en
Pages : 25
Book Description
Exchange Rate Dynamics in an Intertemporal General Equilibrium Model with Nominal Rigidities, Imperfect Competition, and Investments
Author: Allan Bødskov AndersenPublisher:
ISBN:
Category :
Languages : en
Pages : 25
Book Description
Exchange Rate Dynamics in an Intertemporal General Equilibrium Model with Nominal Rigidities, Imperfect Competition, and Investments
Author: Allan Bødskov AndersenPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
The Equilibrium Approach to Exchange Rates
Author: Prakash AptePublisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 56
Book Description
We characterize the equilibrium exchange rate in a general equilibrium economy without imposing strong restrictions on the output processes, preferences, or commodity market imperfections. The nominal exchange rate is determined by differences in initial wealths the currencies of richer countries tend to be overvalued by PPP standards and by differences of marginal indirect utilities of total nominal spending. Changes in the exchange rate mirror differences in growth rates of real spending weighted by relative risk-aversion (which can be time-varying and can differ across countries), and in the case of non-homothetic utility functions, differences in inflation rates computed from marginal spending weights. Thus, standard regression or cointegration tests of PPP suffer from missing-variables biases and ignore variations in risk aversions across countries and over time. We also present cointegration tests of the version of the model with constant relative risk aversion (CRRA) and homothetic preferences. When nominal spending is given an independent role (next to prices) in the short-term dynamics, both PPP and the CRRA model become acceptable.
An Econometric Analysis of the Intertemporal General Equilibrium Approach to Exchange Rate and Current Account Determination
Author: Mary Grace FinnPublisher: London : Department of Economics, University of Western Ontario
ISBN: 9780771411373
Category : Foreign exchange
Languages : en
Pages : 40
Book Description
Dissertation Abstracts International
Author: Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 544
Book Description
An Intertemporal Version of Mundell's Two-country Flexible Exchange Rates Model with Disquilibrium Microfoundations
Author: Neil RankinPublisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 44
Book Description
Essays in General Equilibrium Models of Exchange Rates with Incomplete Asset Markets and Pricing-to-market
Author: Margarida DuartePublisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 198
Book Description
The "gold Standard Paradox" and Its Resolution
Author: Willem H. BuiterPublisher:
ISBN:
Category : Arbitrage
Languages : en
Pages : 76
Book Description
This paper analyzes Krugman's contention that there is a "gold standard paradox" in the speculative attack literature. The paradox occurs if a country's currency appreciates after it runs out of gold or equivalently if a speculative attack can happen only after the country "naturally" runs out of reserves. We first show that Krugman's paradox is a very general phenomenon which does not require mean reverting processes for the fundamentals and which can be present in discrete time models as well as in continuous time models. We present several specific cases in which the paradox occurs i.e. environments which do not support an equilibrium. Next we show that, contrary to Krugman's conjecture, it is not necessary to abandon the assumption of a perfectly fixed exchange rate in favor of a band system in order to recover a well-defined equilibrium. We propose two alternative ways of amending the model which produce an equilibrium and preserve the fixed exchange rate assumption