Money and exchange rates in the Grossman-Weiss-Rotemberg model:

We examine the impact of monetary injections in the Grossman-Weiss-Rotemberg Model and show that monetary shocks can lead to nominal exchange rates that are more volatile than inflation, money growth or interest rate differentials. Moreover, movements in real exchange rates following monetary inject...

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Bibliographic Details
Main Authors: Alvarez, Fernando 1964- (Author), Atkeson, Andrew 1961- (Author)
Format: Book
Language:English
Published: Cambridge, Mass. 1996
Series:National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 5678
Subjects:
Online Access:Volltext
Summary:We examine the impact of monetary injections in the Grossman-Weiss-Rotemberg Model and show that monetary shocks can lead to nominal exchange rates that are more volatile than inflation, money growth or interest rate differentials. Moreover, movements in real exchange rates following monetary injections can be persistent and nearly as large as movements in nominal exchange rates nominal exchange rates.
Physical Description:37 S.

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