Balance Sheets, Exchange Rate Policy, and Welfare

Balance Sheets, Exchange Rate Policy, and Welfare
The debate about the appropriate choice of exchange rate regime is fundamental in international economics. This paper develops a small open-economy model with balance sheet effects and compares the performance of fixed and flexible exchange rate regimes. The model is solved up to a second-order approximation which allows us to address the issue... READ MORE...

Publication date: April 2004
ISBN 9781451848458
$15.00

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