Fiscal Policy in a Floating Exchange Rate Regime with Consumption Home Bias
نویسندگان
چکیده
منابع مشابه
Consumption Home Bias and Exchange Rate Behavior∗
This paper studies the response of the nominal exchange rate to monetary shocks in an economy with consumption home bias (CHB) and sticky wages. The importance of accounting for the exchange rate with CHB are twofold. CHB is a consequence of the small open economy assumption when outputs are specialized and fluctuations in the relative price of traded goods generate deviations from purchasing p...
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Some empirical and theoretical studies have emphasized on fixed exchange rate regime in controlling time inconsistency, while others consider the role of target zone regime as an important factor. Thus there is no general consensus to decide which exchange rate regime may bring about less time-inconsistency. The main purpose of this study is to investigate policy time-inconsistency in exchange ...
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ژورنال
عنوان ژورنال: International Journal of Economics and Finance
سال: 2016
ISSN: 1916-9728,1916-971X
DOI: 10.5539/ijef.v8n6p24