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- W1510042510 abstract "Dornbusch’s overshooting model of the exchange rate was specified in the mid-1970s in a time of profound transformations in the post-World War II monetary system. The modern post-Bretton Woods freely floating exchange rates became common and the the process of capital flows got on its way. The outcome of these phenomena were relatively sharp and violent, as compared to fixed-rate systems, currency fluctuations. Dornbusch’s theory aimed to explain and interpret the character and factors that brought about those violent fluctuations and the answer to the problem evidently required analyzing the relationship between monetary policy and exchange rate changes in the context of an open economy. In addition, Dornbusch described the impact of exchange rate changes on the real economy, or more precisely, upon the foreign trade turnover. Dornbusch examined two crucial phenomena in the field of international finance: 1. the role and influence of the exchange rate in achieving an equilibrium in the domestic financial market; 2. the effectiveness of adjustment processes while using the classic relationship between the exchange rate and price." @default.
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- W1510042510 date "2010-01-01" @default.
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- W1510042510 title "The Role of the Exchange Rate in Poland's Economy. The Empirical Verification of the Dornbusch Model During the Period of 2007 to 2009" @default.
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