Journal article
Exchange rate policy and the average rate of output in a simple nonlinear model
Abstract
Monetary/exchange-rate policy can have permanent real effects; in the small open-economy model that we use, a switch to fixed exchange rates can create a limit cycle and a lower average rate of output. This possibility is illustrated with standard parameter values, it does not require stochastic shocks.
Authors
Denton FT; Scarth WM; Xue W
Journal
International Review of Economics & Finance, Vol. 2, No. 1, pp. 17–27
Publisher
Elsevier
Publication Date
1 1993
DOI
10.1016/1059-0560(93)90028-o
ISSN
1059-0560