Taylor rules and the Deutschmark-dollar real exchange rate:

"We explore the link between an interest rate rule for monetary policy and the behavior of the real exchange rate. The interest rate rule, in conjunction with some standard assumptions, implies that the deviation of the real exchange rate from its steady state depends on the present value of a...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Hauptverfasser: Engel, Charles 1956- (VerfasserIn), West, Kenneth D. (VerfasserIn)
Format: Buch
Sprache:English
Veröffentlicht: Cambridge, Mass. National Bureau of Economic Research 2004
Schriftenreihe:National Bureau of Economic Research <Cambridge, Mass.>: NBER working paper series 10995
Schlagworte:
Zusammenfassung:"We explore the link between an interest rate rule for monetary policy and the behavior of the real exchange rate. The interest rate rule, in conjunction with some standard assumptions, implies that the deviation of the real exchange rate from its steady state depends on the present value of a weighted sum of inflation and output gap differentials. The weights are functions of the parameters of the interest rate rule. An initial look at German data yields some support for the model"--National Bureau of Economic Research web site.
Beschreibung:22, [5] S. graph. Darst.

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