Inflationary Expectations, Variable Output, and Exchange‐Rate Dynamics
作者:
Jay H. Levin,
期刊:
Review of International Economics
(WILEY Available online 1996)
卷期:
Volume 4,
issue 1
页码: 40-53
ISSN:0965-7576
年代: 1996
DOI:10.1111/j.1467-9396.1996.tb00082.x
出版商: Blackwell Publishing Ltd
数据来源: WILEY
摘要:
AbstractThis paper develops a model of exchange‐rate dynamics characterized by inflationary expectations held with perfect foresight, sticky wages, and sluggish output adjustment. In this framework monetary expansion initially lowers interest rates because of sluggish output and price adjustment but quite surprisingly produces exchange‐rate overshooting or undershooting. Moreover, after its initial depreciation in the overshooting case, the domestic currency temporarily appreciates beyond its new long‐run equilibrium level. In the undershooting case, the home currency temporarily appreciates away from its new long‐run equilibrium level. Finally, the dynamic real exchange rate‐real interest rate relationship at times become
点击下载:
PDF
(733KB)
返 回