Segmented asset markets and optimal exchange rate regimes

• 成果类型: Article
• 署名作者: Lahiri, Amartya; Singh, Rajesh; Vegh, Carlos
• 署名单位: Iowa State University; University of British Columbia; University System of Maryland; University of Maryland College Park; University of California System; University of California Los Angeles; National Bureau of Economic Research
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2006.09.007
• 发表日期: 2007
• 页码: 1-21
• 关键词: optimal exchange rates; asset market segmentation

摘要

This paper revisits the issue of the optimal exchange rate regime in a flexible price environment. The key innovation is that we analyze this question in the context of environments where only a fraction of agents participate in asset market transactions (i.e., asset markets are segmented). Under this friction alternative exchange rate regimes have different implications for real allocations in the economy. In the context of this environment we show that flexible exchange rates are optimal under monetary shocks and fixed exchange rates are optimal under real shocks. (C) 2007 Elsevier B.V. All rights reserved.