Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75801
Authors: 
Böhm, Hjalmar
Funke, Michael
Year of Publication: 
2001
Series/Report no.: 
CESifo Working Paper 578
Abstract: 
This paper analyses the impact of exchange rate uncertainty upon the pattern of investment in different exchange rate regimes (very hard pegs, intermediate regimes, and floats) by means of a unified approach. The comparison of different exchange rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending. On the other hand, firms turn out to be more cautious about responding to exchange rate shocks in a credible target zone model than in a flexible exchange rate regime or in a target zone model with stochastic realignments.
Subjects: 
investment
uncertainty
irreversibility
exchange rate regimes
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.