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- W3025559704 abstract "The purpose of this paper is to determine whether a two-tier exchange rate regime is more effective than a fixed rate regime in increasing a country's ability to pursue an independent monetary policy. The analysis compares adjustment to a monetary policy and to a devaluation in the two exchange rate regimes in a portfolio model under imperfect assets substitutability. It is shown that a two-tier exchange rate regime is capable of reducing the current account effects of monetary injection or devaluation only in the long run. In the short run, however, we can get a larger current account response under a two-tier regime. These results reflect the trade-off between quantity and price adjustment." @default.
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- W3025559704 title "Adjustment to monetary policy and devaluation under two-tier and fixed exchange rate regimes" @default.
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- W3025559704 doi "https://doi.org/10.1016/0304-3878(85)90012-4" @default.
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