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Speculation, incomplete currency market participation, and nonfundamental movements in nominal and real exchange rates
Journal article   Peer reviewed

Speculation, incomplete currency market participation, and nonfundamental movements in nominal and real exchange rates

Richard C. Barnett
Journal of international economics, v 33(1), pp 167-186
1992

Abstract

This paper studies possible nonfundamental movements in nominal and real exchange rates arising from a world economy with speculation, incomplete participation in international currency markets and nontraded goods. The model is capable of generating equilibria which display comovements in nominal and real exchange rates not unlike those observed in actual economies.

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Web of Science research areas
Economics
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