Is Bad News about Inflation Good News for the Exchange Rate? And, If So, Can That Tell Us Anything about the Conduct of Monetary Policy?
Published Date
Copyright 2008
ISBN 9780226092119
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Copy CitationRichard H. Clarida and Daniel Waldman, Asset Prices and Monetary Policy (University of Chicago Press, 2008), chap. 9, https://www.nber.org/books-and-chapters/asset-prices-and-monetary-policy/bad-news-about-inflation-good-news-exchange-rate-and-if-so-can-tell-us-anything-about-conduct.
Published From Paper
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Working Paper
We show in a simple—but robust—theoretical monetary exchange rate model that the sign of the covariance between an...