The Advantages of Targeting the Real Exchange Rate

• 영문명: The Advantages of Targeting the Real Exchange Rate
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Christos. C. Paraskevopoulos John Paschakis
• 간행물 정보: 『Journal of Economic Integration』제15권 제3호, 436~459쪽, 전체 24쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2000.09.30

영문 초록

This paper uses a simple open-economy macroeconomic framework to explore the implications of real exchange rate targeting for the behavior of real output, the domestic real interest rate, trade account, net foreign asset holdings, and the inflation rate. It finds that a more depreciated level of the real exchange rate decreases the domestic real interest rate and net foreign debt, and leads to a higher level of output and net exports. For inflation control, given price stickiness real exchange rate targeting may not lead to higher rates of inflation. The results are consistent with the after-effects of EMS currency re-alignment. They also imply that a real targets approach to exchange rate policy rather than a nominal anchor approach may be more appropriate for the European Union inflation-prone countries and the high inflation developing countries.

목차

Ⅰ.Introduction

Ⅱ.The Analytical Framework

Ⅲ.Solution of the Model

Ⅳ.Conclusion

키워드

Real Exchange Rete Targeting Foreign Exchange Market Current account