TY  - JOUR
AU  - Cumby,Robert E.
TI  - Monetary Policy Under Dual Exchange Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1424
PY  - 1984
Y2  - August 1984
UR  - http://www.nber.org/papers/w1424
L1  - http://www.nber.org/papers/w1424.pdf
N1  - Author contact info:
Robert E. Cumby
Georgetown University
School of Foreign Service
Washington, DC 20057-1045
Tel: 202/687-2990
Fax: 202/687-6102
E-Mail: cumbyr@georgetown.edu
AB  - This paper finds that the introduction of dual exchange rates gives the monetary authority greater independence from external constraints than it would otherwise enjoy. The monetary authority is able to influence the level of aggregate demand in the short run and to sterilize the effects of temporary foreign distrubances. In addition, the paper finds that dual rates insulate the domestic economy fully from foreign interest rate changes but do not provide insulation from speculative disturbances.
ER  -