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FIXING EXCHANGE RATES: A Virtual Quest for Fundamentals (1995)
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BibTeX
@MISC{Flood95fixingexchange,
author = {Robert P. Flood and Andrew K. Rose},
title = {FIXING EXCHANGE RATES: A Virtual Quest for Fundamentals},
year = {1995}
}
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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. Keywords: structural, traditional, volatility, monetary, fixed, floating, regime. JEL Classification Numbers: F31, F33. ____________________________________________________________________________ * Corresponding Author * Flood is: Senior Economist, Research Department, IMF; and Research Associate, NBER. Rose is: Associate Professor and Chair of Economic Analysis and Policy, Haas School of Business, University of California, Berkeley; Research Associate, NBER; and Research Fellow, CEPR. Part of this work was completed while Rose was visiting the IMF Research Department a...
Keyphrases
virtual quest fixing exchange rate research associate exchange rate regime imf research department fixed exchange rate clear tradeoff macroeconomic fundamental haas school author flood associate professor research fellow exchange rate volatility macroeconomic variable jel classification number senior economist economic analysis research department macroeconomic stability exchange rate model
