Exchange Rate Dynamics with Sluggish Prices under Alternative Price-Adjustment Rules
نویسندگان
چکیده
منابع مشابه
The Adjustment of Prices and the Adjustment of the Exchange Rate
The purchasing power parity puzzle relates to the adjustment of real exchange rates. Real exchange rates are extremely volatile, suggesting that temporary shocks emanate from the monetary sector. But the half-life of real exchange rate deviations is extremely large – 2.5 to 5 years. This halflife seems too large to be explained by the slow adjustment of nominal prices. We offer a different inte...
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ژورنال
عنوان ژورنال: International Economic Review
سال: 1984
ISSN: 0020-6598
DOI: 10.2307/2648872