01753cas a2200253 a 4500 AALejournalIMF008630 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451937855 1018-5941 BD-DhAAL BD-DhAAL Gulde, Anne. Sticky Exchange Rates and Flexible Prices : A Heretic View From the Interwar Period / Anne Gulde, Holger Wolf. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (74 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Real exchange rate variability tends to be higher under flexible than under fixed exchange rates. The neokeynesian view attributes the higher variability to the combination of volatile nominal exchange rates with sticky prices. The neoclassical approach regards an increased incidence of real shocks as the culprit. We test the crucial assumptions underlying the two models for the interwar period. Prices and exchange rates are found to be equally flexible. We hence reject the neokeynesian sticky price view for our sample period. In contrast, our results are consistent with, while not constituting evidence for, the neoclassical equilibrium approach. Mode of access: Internet Wolf, Holger. IMF Working Papers; Working Paper ; No. 1991/124 Full text available on IMF http://elibrary.imf.org/view/journals/001/1991/124/001.1991.issue-124-en.xml IMF e-Library