Turtelboom, Bart.
Consumption Smoothing and Exchange Rate Volatility Bart Turtelboom. [electronic resource] / Bart Turtelboom. - Washington, D.C. : International Monetary Fund, 1995. - 1 online resource (56 p.) - IMF Working Papers; Working Paper ; No. 95/108 . - IMF Working Papers; Working Paper ; No. 95/108 .
This paper analyzes exchange rate behavior in a model where consumers trade goods to diversify shocks to their income. A model with traded and nontraded goods is simulated in a multilateral context based upon historical output correlations for the period 1970-92. Simulation results indicate that the observed volatility of multilateral real exchange rates for the United States, Germany and Japan is not inconsistent with exchange rate volatility implied by consumption-smoothing behavior.
1451853041 : 15.00 USD
1018-5941
10.5089/9781451853049.001 doi
Exchange Rate
Exchange Rates
Foreign Asset
Net Foreign Asset
Real Exchange Rate
Germany
Japan
United States
Consumption Smoothing and Exchange Rate Volatility Bart Turtelboom. [electronic resource] / Bart Turtelboom. - Washington, D.C. : International Monetary Fund, 1995. - 1 online resource (56 p.) - IMF Working Papers; Working Paper ; No. 95/108 . - IMF Working Papers; Working Paper ; No. 95/108 .
This paper analyzes exchange rate behavior in a model where consumers trade goods to diversify shocks to their income. A model with traded and nontraded goods is simulated in a multilateral context based upon historical output correlations for the period 1970-92. Simulation results indicate that the observed volatility of multilateral real exchange rates for the United States, Germany and Japan is not inconsistent with exchange rate volatility implied by consumption-smoothing behavior.
1451853041 : 15.00 USD
1018-5941
10.5089/9781451853049.001 doi
Exchange Rate
Exchange Rates
Foreign Asset
Net Foreign Asset
Real Exchange Rate
Germany
Japan
United States