International trade and exchange rate volatility
Article Abstract:
An explication of the relationship between trade volume and exchange rate volatility in existing forward exchange rate markets was presented. The relationship between the forward market and the actions of exporters, importers, speculators and central bank was discussed. It was concluded that exchange rate volatility is influenced by the presence of a forward market. The positive or negative net foreign currency position, in turn, has an impact on the forward market.
Publication Name: European Economic Review
Subject: Economics
ISSN: 0014-2921
Year: 1992
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A Theory of Current Account and Exchange Rate Determinations
Article Abstract:
An optimal behavior model is developed for the current account, the exchange rate, terms of trade and real interest rates. A reduced form of prices and current account emerges. Net savings decisions lead to an understanding of the current account.
Publication Name: European Economic Review
Subject: Economics
ISSN: 0014-2921
Year: 1983
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Shock Treatment for Inflation
Article Abstract:
Optimal policy for curing inflation in an open economy is derived which does not cause a rise in exchange rate or prices. Significant swings in money stock and real output occur. A temporary negative interest rate occurs.
Publication Name: European Economic Review
Subject: Economics
ISSN: 0014-2921
Year: 1983
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