Authors
Citation
J. Fender, ON THE DESIRABILITY OF INSULATION - A COUNTEREXAMPLE, Journal of international money and finance, 13(2), 1994, pp. 232-238
Citations number
7
Categorie Soggetti
Business Finance
Journal title
ISSN journal
02615606
Volume
13
Issue
2
Year of publication
1994
Pages
232 - 238
Database
ISI
SICI code
0261-5606(1994)13:2<232:OTDOI->2.0.ZU;2-1
Abstract
Using a two-country representative agent model, it is shown that flexi
ble exchange rates may insulate an economy from foreign monetary distu
rbances, but that such shocks lead to higher expected welfare under fi
xed exchange rates.