Article ID Journal Published Year Pages File Type
5067067 European Economic Review 2012 12 Pages PDF
Abstract
► We analyze exchange-rate-based-stabilization in a model with durable consumer goods. ► The weak credibility hypothesis can account for the stylized facts. ► Quantitative effects on consumption and the real exchange rate are large. ► Supply effects are limited to a secondary role.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Resurrecting the weak credibility hypothesis in models of exchange-rate-based stabilization
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