Dynamics of a Floating Exchange Rate Regime

DSpace/Manakin Repository

Dynamics of a Floating Exchange Rate Regime

Citable link to this page


Title: Dynamics of a Floating Exchange Rate Regime
Author: Helpman, Elhanan; Razin, Assaf

Note: Order does not necessarily reflect citation order of authors.

Citation: Helpman, Elhanan, and Assaf Razin. 1982. Dynamics of a floating exchange rate regime. Journal of Political Economy 90(4): 728-754.
Full Text & Related Files:
Abstract: We study the full equilibrium dynamics of a two-country world economy with a floating exchange rate, traded and nontraded goods, and explicit modeling of the use of money. The resulting exchange rate equation depends on several details of the economic structure, such as the supply structure and propensities to spend on various goods. Although real exchange rate movements have the usual association with the current account, the ordinary exchange rate may appreciate or depreciate when there are deficits on current account even when the quantities of money do not change. Deviations from purchasing-power parity and the Fisher equation are shown to be the rule rather than the exception.
Published Version: doi:10.1086/261086
Terms of Use: This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA
Citable link to this page: http://nrs.harvard.edu/urn-3:HUL.InstRepos:3445095
Downloads of this work:

Show full Dublin Core record

This item appears in the following Collection(s)


Search DASH

Advanced Search