Hidden Bibliographic Details
| Other authors / contributors: | Faruqee, Hamid, author.
International Monetary Fund. Research Department, issuing body.
|
|---|
| ISBN: | 1283570173
9781283570176
|
|---|
| Notes: | Includes bibliographical references (pages 36-39).
Restrictions unspecified
Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010.
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212
digitized 2010 HathiTrust Digital Library committed to preserve
Print version record.
|
|---|
| Summary: | Following the collapse of the Bretton Woods exchange rate system in 1973, there has been a considerable increase in the short-term variability of exchange rates. This is clearly evident in Figure 1, which shows the month-to-month percentage changes in the bilateral exchange rates of the three major industrial countries. As prices tend to be sticky in the short run, this rise in nominal exchange rate variability has also been associated with a roughly comparable increase in the volatility of real exchange rates. 2 Moreover, the greater variability in exchange rates has been matched by a rise in uncertainty, as short-run movements in exchange rates tend to be unpredictable. This unpredictability has been manifested in the relative lack of success of exchange rate models in explaining month-to-month and quarter-to-quarter changes in exchange rates as well as tests of bias in the forward exchange market which show that exchange rates do not vary as predicted by the forward rate or the interest rate differential. 3.
|
|---|
| Other form: | Print version: Clark, Peter B. (Peter Barton), 1941- Exchange rate volatility, pricing to market and trade smoothing. [Washington, D.C.] : International Monetary Fund, Research Dept., ©1997
|
|---|
