NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Fixing Exchange Rates: A Virtual Quest for Fundamentals

Robert P. Flood, Andrew K. Rose

NBER Working Paper No. 4503
Issued in October 1993
NBER Program(s):   IFM

Fixed exchange rates are less volatile than floating rates. But the volatility of macroeconomic variables such as money and output does not change very much across exchange rate regimes. This suggests that exchange rate models based only on macroeconomic fundamentals are unlikely to be very successful. It also suggests that there is no clear tradeoff between reduced exchange rate volatility and macroeconomic stability.

download in pdf format
   (420 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w4503

Published: Journal of Monetary Economics, 1995 citation courtesy of

Users who downloaded this paper also downloaded these:
Ghosh, Gulde, Ostry, and Wolf w5874 Does the Nominal Exchange Rate Regime Matter?
Chari, Kehoe, and McGrattan w11133 Sudden Stops and Output Drops
Bekaert and Grenadier w7346 Stock and Bond Pricing in an Affine Economy
Frankel and Rose w4865 A Survey of Empirical Research on Nominal Exchange Rates
Fraga, Goldfajn, and Minella w10019 Inflation Targeting in Emerging Market Economies
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us