Authors: | Schabert, Andreas |
Title: | Exchange rate policy under sovereign default risk |
Language (ISO): | en |
Abstract: | We examine monetary policy options for a small open economy where sovereign default might occur due to intertemporal insolvency. Under interest rate policy and floating exchange rates the equilibrium is indetermined. Under a fixed exchange rate the equilibrium is uniquely determined and independent of sovereign default. |
Subject Headings: | Equilibrium Intertemporal insolvency Monetary policy options Small open economy |
URI: | http://hdl.handle.net/2003/27609 http://dx.doi.org/10.17877/DE290R-445 |
Issue Date: | 2011-02-08 |
Appears in Collections: | Sonderforschungsbereich (SFB) 823 |
Files in This Item:
File | Description | Size | Format | |
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DP_0711_SFB823_Schabert.pdf | DNB | 192.09 kB | Adobe PDF | View/Open |
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