@techreport{NBERw12699,
 title = "Pricing-to-Market, the Interest-Rate Rule, and the Exchange Rate",
 author = "Maurice Obstfeld",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "12699",
 year = "2006",
 month = "November",
 URL = "http://www.nber.org/papers/w12699",
 abstract = {Even when the exchange-rate plays no expenditure-switching role, countries may wish to have flexible exchange rates in order to free the domestic interest rate as a stabilization tool. In a setting with nontraded goods, exchange-rate movements may also enhance international risk sharing.},
}