Exchange Rate Dynamics With Sluggish Prices Under Alternative Price-Adjustment Rules / / Maurice Obstfeld, Kenneth Rogoff

• Autore: Obstfeld Maurice
• Pubblicazione: Cambridge, Mass, : National Bureau of Economic Research, 1983; [Washington, D.C.] : , : [Board of Governors of the Federal Reserve Board], , [1983]
• Edizione: Rev. May 1983.
• Descrizione fisica: 1 online resource : illustrations (black and white)
• Soggetto topico: International Economics
• Classificazione: F
• Altri autori: RogoffKenneth
• Note generali: August 1983.
• Nota di bibliografia: Includes bibliographical references (page R1-R3).
• Sommario/riassunto: 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.
• Titolo autorizzato: Exchange Rate Dynamics With Sluggish Prices Under Alternative Price-Adjustment Rules
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910703335903321
• Lo trovi qui: Univ. Federico II
• Serie: Working Paper Series (National Bureau of Economic Research) ; no. w1173.