A Model of Foreign Exchange Rate Indetermination.

Economic agents undertake actions to protect themselves from sort-run impact of foreign exchange rate fluctuations: Nominal goods prices are set in consumer' currencies and firms hedge foreign exchange risk. A model is presented here which shows that these features of the economy can lead to inderminacy in the nominal exchange rate in the short run.

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Year of publication:	1996
Authors:	Engel, C.
Institutions:	Department of Economics, University of Washington
Subject:	EXCHANGE RATE

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Series:	Discussion Papers in Economics at the University of Washington.
Type of publication:	Book / Working Paper
Notes:	20 pages
Classification:	F30 - International Finance. General ; F31 - Foreign Exchange
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005618454