World-consistent equilibrium exchange rates

Equilibrium models of exchange rates

Most of the large industrialized countries floated their exchange rates in early 1973, after the demise of the post-war Bretton Woods system of fixed exchange rates. While there have been extensive academic disputes over the relative merits of fixed and floating exchange rates, most discussions have been carried out on a largely hypothetical basis. The move to a generalized floating regime prov...

Exchange Rates and Casualties During the First World War

I estimate two factor models of Swiss exchange rates during the First World War. I have data for five of the primary belligerents: Britain, France, Italy, Germany, and Austria-Hungary. At the outbreak of the war, these nations suspended convertibility of their currencies into gold with the promise that after the war each would restore convertibility at the old par. However, once convertibility ...

Nonlinearity In Exchange Rates and Forecasting

Exchange rates.

THE UNIVERSITY of Pennsylvania health system was in London recently, recruiting nurses. Its advertisement stated that its recruiters were experienced in hiring nurses from the UK, Ireland and the Philippines, and an 'on the spot job offer is a possibility'. This one advert neatly captures the dynamics of the new international nursing labour market. The advert was placed by an international recr...

ɛ-Consistent equilibrium in repeated games

We introduce the concept of e-consistent equilibrium where each player plays a e-best response after every history reached with positive probability. In particular, an e-consistent equilibrium induces an e-equilibrium in any subgame reached along the play path. The existence of e-consistent equilibrium is examined in various repeated games. The main result is the existence in stochastic games w...