TY  - JOUR
AU  - Flood,Robert P.
AU  - Rose,Andrew K.
TI  - Fixing Exchange Rates: A Virtual Quest for Fundamentals
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4503
PY  - 1993
Y2  - October 1993
UR  - http://www.nber.org/papers/w4503
L1  - http://www.nber.org/papers/w4503.pdf
N1  - Author contact info:
Robert Flood
Notre Dame
E-Mail: rflood1@nd.edu

Andrew K. Rose
Haas School of Business Administration
University of California, Berkeley
Berkeley, CA 94720-1900
Tel: 510/642-6609
Fax: 510/642-4700
E-Mail: arose@haas.berkeley.edu
AB  - 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.
ER  -