Speculative rational expectations' exchange rate dynamics with risk averse wealth owners and a monetary authority averse to exchange rate variability
Item Type:Journal Article
Citation:Dunne, Peter G.. 'Speculative rational expectations' exchange rate dynamics with risk averse wealth owners and a monetary authority averse to exchange rate variability'. - Economic & Social Review, Vol. 22, No. 1, October, 1990, pp. 57-63, Dublin: Economic & Social Research Institute
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In the analysis to follow an important aspect of speculative exchange rate movements is examined in isolation from macroeconomic feedback effects. The over-riding objective here is to investigate the effect of adherence to an interest rate rule by the monetary authority when international speculators behave in a way such that there is full rational expectations with respect to both the mean and variance of the future exchange rate.
Author: Dunne, Peter G.
Publisher:Economic & Social Studies
Type of material:Journal Article
Availability:Full text available