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Exchange Rate Determination and Optimal Economic Policy Under Various Exchange Rate Regimes - Couverture souple

De Jong, Eelke

 
9783540540212: Exchange Rate Determination and Optimal Economic Policy Under Various Exchange Rate Regimes

Synopsis

This book investigates the causes of the bad performance of many exchange rate models. A structural model of exchange rate determination is estimated in which expectations are proxied by means of rolling regressions. This model is used to determine the optimal way to peg a small European country's exchange rate to the Deutsche Mark.

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