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dc.contributor.authorJEANNE, Olivier
dc.contributor.authorROSE, Andrew K.
dc.date.accessioned2011-04-19T12:48:08Z
dc.date.available2011-04-19T12:48:08Z
dc.date.issued2002
dc.identifier.citationQuarterly Journal of Economics, 2002, 117, 2, 537-569
dc.identifier.issn0033-5533
dc.identifier.urihttps://hdl.handle.net/1814/16510
dc.description.abstractPolicy-makers often justify their choice of fixed exchange rate regimes as a shelter against nonfundamental influences in the foreign exchange market. This paper proposes a framework, based on endogenous noise trading, which makes sense of the policy-makers' view. We show that as a result of multiple equilibria, the model violates Mundell's Incompatible Trinity: under some conditions, it is possible to reduce the volatility of the exchange rate without any sacrifice in terms of monetary autonomy. We provide empirical evidence supportive of the existence of a nonfundamental channel in the link between exchange rate regimes and exchange rate volatility.
dc.language.isoen
dc.publisherMIT Press
dc.titleNoise Trading and Exchange Rate Regimes
dc.typeArticle
dc.neeo.contributorJEANNE|Olivier|aut|
dc.neeo.contributorROSE|Andrew K.|aut|
dc.identifier.volume117
dc.identifier.startpage537
dc.identifier.endpage569
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dc.identifier.issue2


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