Exchange rate-based Stabilization with Endogenous Fiscal Response.

In the context of a perfect foresight, intertemporal optimizing, cash-in-advance model, this paper studies the dynamics of an inconsistent exchange rate-based stabilization policy-a policy that fixes the exchange rate without an underlying fiscal adjustment to ensure that the exchange rate policy is sustainable in the long-run.

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Year of publication:	1996
Authors:	Talvi, E.
Subject:	EXCHANGE RATE \| FINANCIAL POLICY

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Type of publication:	Book / Working Paper
Notes:	29 pages
Classification:	E44 - Financial Markets and the Macroeconomy ; E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General ; O19 - International Linkages to Development; Role of International Organizations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005647332