Policy Choices under Different Exchange Rate Regimes

  • Paul De Grauwe
  • Michele Fratianni
  • Mustapha K. Nabli

Abstract

In this chapter the behaviour of the financial model, described in the previous chapter, is analysed under different exogenous disturbances. All disturbances are of the unexpected kind and can thus be considered as ‘news’. It is well known from the rational expectations literature that only expected disturbances are already reflected in prices, exchange rates, and interest rates.

Keywords

eAes 

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Copyright information

© Paul De Grauwe, Michele Fratianni and Mustapha K. Nabli 1985

Authors and Affiliations

  • Paul De Grauwe
    • 1
  • Michele Fratianni
    • 2
  • Mustapha K. Nabli
    • 3
  1. 1.Catholic University of LeuvenBelgium
  2. 2.Indiana UniversityUSA
  3. 3.University of TunisTunisia

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