Policy Choices under Different Exchange Rate Regimes



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.


Exchange Rate Interest Rate Monetary Policy Exchange Rate Regime Annual Percentage Change 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

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

Authors and Affiliations

  1. 1.Catholic University of LeuvenBelgium
  2. 2.Indiana UniversityUSA
  3. 3.University of TunisTunisia

Personalised recommendations