Consumption Smoothing and Exchange Rate Volatility /

This paper analyzes exchange rate behavior in a model where consumers trade goods to diversify shocks to their income. A model with traded and nontraded goods is simulated in a multilateral context based upon historical output correlations for the period 1970-92. Simulation results indicate that the...

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Podrobná bibliografie
Hlavní autor: Turtelboom, Bart
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 1995.
Edice:IMF Working Papers; Working Paper ; No. 1995/108
On-line přístup:Full text available on IMF
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Shrnutí:This paper analyzes exchange rate behavior in a model where consumers trade goods to diversify shocks to their income. A model with traded and nontraded goods is simulated in a multilateral context based upon historical output correlations for the period 1970-92. Simulation results indicate that the observed volatility of multilateral real exchange rates for the United States, Germany and Japan is not inconsistent with exchange rate volatility implied by consumption-smoothing behavior.
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Fyzický popis:1 online resource (56 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
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