Money, banking, and the determination of real and nominal exchange rates

被引:5
作者
Betts, CM
Smith, BD
机构
[1] CORNELL UNIV, ITHACA, NY 14853 USA
[2] FED RESERVE BANK MINNEAPOLIS, MINNEAPOLIS, MN 55480 USA
关键词
D O I
10.2307/2527288
中图分类号
F [经济];
学科分类号
02 ;
摘要
We consider a model where spatial separation, limited communication, and stochastic relocation create a role for banks and country-specific currencies. The same factors also permit a deviation from the law of one price. We examine how monetary policies influence real and nominal rates of exchange and real and nominal rates of interest under both fixed and flexible exchange rate regimes. We also demonstrate that both regimes are characterized by an indeterminacy of both the real and the nominal rate of exchange.
引用
收藏
页码:703 / 734
页数:32
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