Exchange rates and the fiscal theory of the price level

• 成果类型: Article; Proceedings Paper
• 署名作者: Dupor, B
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(00)00006-4
• 发表日期: 2000
• 页码: 613-630
• 关键词: Exchange rate; Fiscal theory of the price level; indeterminacy; Interest rate rules; money supply rules

摘要

This paper addresses exchange rate determination under a nominal interest peg in a two-country cash-in-advance model. Under two types of cash-in-advance constraints, if both governments peg the nominal interest rate on domestic bonds, there is a continuum of equilibria, each consistent with different nominal exchange rates and real resource allocations. The well-known finding of equilibrium uniqueness under a nominal interest rate peg in a closed economy does not survive in a multi-country, multi-currency setting. (C) 2000 Elsevier Science B.V. All rights reserved. JEL classification: E31; E52; F33.