02346oam 22004333a 450 991070333590332120230622022918.0(NBER)w1173(CKB)3240000000027225(OCoLC)696180583(EXLCZ)99324000000002722520230622d1983 fy 0engurcnu||||||||txtrdacontentcrdamediacrrdacarrierExchange Rate Dynamics With Sluggish Prices Under Alternative Price-Adjustment Rules /Maurice Obstfeld, Kenneth RogoffRev. May 1983.Cambridge, MassNational Bureau of Economic Research1983[Washington, D.C.] :[Board of Governors of the Federal Reserve Board],[1983]1 online resourceillustrations (black and white);NBER working paper seriesno. w1173August 1983.Includes bibliographical references (page R1-R3).This paper studies exchange rate behavior in models with moving long-run equilibria incorporating alternative price-adjustment mechanisms.The paper demonstrates that price-adjustment rules proposed by Mussa andby Barro and Grossman yield models that are empirically indistinguishable from each other. For speeds of goods-market adjustment that are "too fast," the Barro-Grossman rule appears to induce instability; but we argue that when the ruleis interpreted properly, models incorporating it are dynamically stable regardless of the speed at which disequilibriumis eliminated. The Barro-Grossman pricing scheme is shown to be a natural generalization, to a setting of moving long-run equilibria, of less versatile schemes proposed in earlier literature on exchange rate dynamics.Working Paper Series (National Bureau of Economic Research)no. w1173.International EconomicsjelcInternational EconomicsFjelcObstfeld Maurice118388Rogoff Kenneth324217National Bureau of Economic Research.MaCbNBERMaCbNBERBOOK9910703335903321Exchange Rate Dynamics With Sluggish Prices Under Alternative Price-Adjustment Rules3388755UNINA