Money and exchange rates in the Grossman-Weiss-Rotemberg model

We analyze the impact of monetary policy on inflation, interest rates and exchange rates in a model with segmented asset markets developed by Grossman and Weiss (1983) and Rotemberg (1984, 1985). We find parameters for which real and nominal exchange rates in this model are (1) much more volatile th...

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Autor principal: Alvarez, F.
Otros Autores: Atkeson, A.
Formato: Capítulo de libro
Lenguaje:Inglés
Publicado: Elsevier 1997
Acceso en línea:Registro en Scopus
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030 |a JMOED 
100 1 |a Alvarez, F. 
245 1 0 |a Money and exchange rates in the Grossman-Weiss-Rotemberg model 
260 |b Elsevier  |c 1997 
270 1 0 |m Atkeson, A.; Department of Economics, Univ. of Minnesota, 1035 Management and Economics, 271 19th Avenue South, Minneapolis, MN 55455, United States; email: atkeson@atlas.socsci.umn.edu 
506 |2 openaire  |e Política editorial 
504 |a Baumol, W.J., The transactions demand for cash: An inventory theoretic approach (1952) Quarterly Journal of Economics, 66, pp. 545-556 
504 |a Baxter, M., Fisher, S.N., King, R.G., Rouwenhorst, K.G., (1991) The Liquidity Effect in General Equilibrium, , Mimeo, University of Virginia 
504 |a Baxter, M., Stockman, A.C., Business cycles and the exchange rate regime: Some international evidence (1989) Journal of Monetary Economics, 23 (3), pp. 377-400 
504 |a Flood, R.P., Rose, A.K., Fixing exchange rates: A virtual quest for fundamentals (1995) Journal of Monetary Economics, 36 (1), pp. 3-38 
504 |a Fuerst, T., Liquidity, loanable funds, and real activity (1992) Journal of Monetary Economics, 29, pp. 3-24 
504 |a Grilli, V., Roubini, N., Liquidity and exchange rates (1992) Journal of International Economics, 32, pp. 339-352 
504 |a Grossman, S., Weiss, L., Transactions based model of the monetary transmission mechanism (1983) American Economic Review, 73, pp. 871-880 
504 |a Jovanovic, B., Inflation and welfare in the steady state (1982) Journal of Political Economy, 90 (3), pp. 561-577 
504 |a Lucas R.E., Jr., Liquidity and interest rates (1990) Journal of Economic Theory, 50, pp. 237-264 
504 |a Meese, R., Rogoff, K., Empirical exchange rate models of the seventies: Do they fit out of sample? (1983) International Economic Review, 14, pp. 3-24 
504 |a Mussa, M., Nominal exchange rate regimes and the behavior of real exchange rates (1986) Carnegie Rochester Conference Series on Public Policy, 25, pp. 117-214 
504 |a Romer, D., A simple general equilibrium version of the Baumol Tobin model (1986) Quarterly Journal of Economics, 101 (4), pp. 663-685 
504 |a Rotemberg, J., A monetary equilibrium with transactions costs (1984) Journal of Political Economy, 92 (1), pp. 40-58 
504 |a Rotemberg, J., Money and the terms of trade (1985) Journal of International Economics, 19, pp. 141-160 
504 |a Schlagenhauf, D.E., Wrase, J.M., Liquidity and real activity in a simple open economy model (1995) Journal of Monetary Economics, 35 (3), pp. 431-462 
504 |a Tobin, J., The interest elasticity of the transactions demand for cash (1956) Review of Economics and Statistics, 38 (3), pp. 241-247 
520 3 |a We analyze the impact of monetary policy on inflation, interest rates and exchange rates in a model with segmented asset markets developed by Grossman and Weiss (1983) and Rotemberg (1984, 1985). We find parameters for which real and nominal exchange rates in this model are (1) much more volatile than interest rates, inflation rates, and money growth rates, (2) highly correlated with each other, and (3) highly persistent. While this model fails to match the data in other important respects, it illustrates a potentially useful approach to modelling exchange rate behavior. © 1997 Elsevier Science B.V. All rights reserved.  |l eng 
536 |a Detalles de la financiación: National Science Foundation 
536 |a Detalles de la financiación: Andrew Atkeson thanks the National Science Foundation and the Sloan Foundation for financial support. 
593 |a Department of Economics, University of Chicago, Chicago, IL 60637, United States 
593 |a Universidad Torcuato di Tella, Buenos Aires, 1428, Argentina 
593 |a Department of Economics, University of Minnesota, Minneapolis, MN 55455, United States 
593 |a National Bureau of Economic Research, Cambridge, MA 02138, United States 
593 |a Department of Economics, Univ. of Minnesota, 1035 Management and Economics, 271 19th Avenue South, Minneapolis, MN 55455, United States 
690 1 0 |a EXCHANGE RATES 
690 1 0 |a INTEREST RATES 
690 1 0 |a LIQUIDITY EFFECT 
690 1 0 |a MONETARY POLICY 
690 1 0 |a SEGMENTED MARKETS 
700 1 |a Atkeson, A. 
773 0 |d Elsevier, 1997  |g v. 40  |h pp. 619-640  |k n. 3  |p J. Monet. Econ.  |x 03043932  |t Journal of Monetary Economics 
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856 4 0 |u https://doi.org/10.1016/S0304-3932(97)00054-8  |y DOI 
856 4 0 |u https://hdl.handle.net/20.500.12110/paper_03043932_v40_n3_p619_Alvarez  |y Handle 
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