the supply of home goods or to the real rate of return are the main source of uncertainty, and increases when fluctuations … fluctuations due to self-fulfilling expectations. I also analyze the stabilizing role of these PPP rules when fluctuations are … are mainly due to shocks to the supply of traded goods. In all cases, PPP rules increase the volatility of nominal …

temporary money based program (MB)--this paper considers a third stabilization policy consisting of a temporary money based … program with initial reliquefication--i.e., an initial once-and-for-all increase in the money supply--that keeps the nominal …