Exchange Rate Volatility, Trade, and Capital Flows under Alternative Exchange Rate Regimes |
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Author:
| Sercu, Piet Uppal, Raman |
Contribution by:
| Horiuchi, Akiyoshi Krugman, Paul Sato, Ryzuo Subrahmanyam, Marti Zeckhauser, Richard |
Series title: | Japan-US Center UFJ Bank Monographs on International Financial Markets Ser. |
ISBN: | 978-0-521-56294-2 |
Publication Date: | Jun 2000 |
Publisher: | Cambridge University Press
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Book Format: | Hardback |
List Price: | USD $85.99 |
Book Description:
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Recent years have seen a substantial increase in the volatility of exchange rates. This trend has prompted economists and finance analysts to question if the observed behavior of exchange rates is consistent with a rational model. Does that volatility, further, hinder trade? Professors Sercu and Uppal examine these issues in the context of dynamic general equilibrium models, explicitly considering the role of financial markets while allowing for commodity markets to be segmented across...
More DescriptionRecent years have seen a substantial increase in the volatility of exchange rates. This trend has prompted economists and finance analysts to question if the observed behavior of exchange rates is consistent with a rational model. Does that volatility, further, hinder trade? Professors Sercu and Uppal examine these issues in the context of dynamic general equilibrium models, explicitly considering the role of financial markets while allowing for commodity markets to be segmented across countries. They show that the theoretical model for exchange rates in this context are quite different from those put forth by monetary theorists and proponents of purchasing power parity arguments.