Money and Exchange Rates in the Grossman-Weiss-Rotemberg Model
NBER Working Paper No. 5678
We examine the impact of monetary injections in the Grossman-Weiss-Rotemberg Model and show that monetary shocks can lead to nominal exchange rates that are more volatile than inflation, money growth or interest rate differentials. Moreover, movements in real exchange rates following monetary injections can be persistent and nearly as large as movements in nominal exchange rates nominal exchange rates.
Document Object Identifier (DOI): 10.3386/w5678
Published: Journal of Monetary Economics, Vol. 40, no. 3 (1997): 619-640.
Users who downloaded this paper also downloaded these: