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- W2162488703 abstract "A model comprising spot and forward foreign exchange markets and a domestic credit market is used to examine the trade-off between volatility in the nominal exchange rate and domestic interest rate. It also shows how a slowly crawling spot rate can raise interest rate volatility and the amplitude of reserve flows. Finally, the paper extends a finding by Driskill and McCafferty that the exchange rate effects of external shocks are differently affected by the responsiveness of speculation to expected profits; high responsiveness makes the spot exchange rate more sensitive to foreign financial shocks but less sensitive to trade balance shocks." @default.
- W2162488703 created "2016-06-24" @default.
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- W2162488703 date "1985-09-01" @default.
- W2162488703 modified "2023-09-27" @default.
- W2162488703 title "Forward Rates, Interest Rates, and Expectations Under Alternative Exchange Rate Regimes" @default.
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- W2162488703 doi "https://doi.org/10.1111/j.1475-4932.1985.tb02020.x" @default.
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