TY  - JOUR
AU  - Obstfeld,Maurice
TI  - Pricing-to-Market, the Interest-Rate Rule, and the Exchange Rate
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12699
PY  - 2006
Y2  - November 2006
UR  - http://www.nber.org/papers/w12699
L1  - http://www.nber.org/papers/w12699.pdf
N1  - Author contact info:
Maurice Obstfeld
Department of Economics
University of California, Berkeley
530 Evans Hall #3880
Berkeley, CA 94720-3880
Tel: 510/643-9646
Fax: 510/642-6615
E-Mail: obstfeld@econ.berkeley.edu
AB  - 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.
ER  -