Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82885
Authors: 
Bergvall, Anders
Year of Publication: 
2002
Series/Report no.: 
Working Paper, Department of Economics, Uppsala University 2000:25
Abstract: 
In this paper I investigate the relevance of the exchange rate regime for macroeconomic stability. I simulate hypothetical macroeconomic developments under different regimes in Sweden during the period 1972 -1996. The main question is how stable output would have been if Sweden had had a floating exchange rate regime. Would it have been better with a floating exchange rate than the actual quasi-fixed regime? Also the development with an irrevocably fixed exchange rate is investigated. The results indicate that the central bank can stabilize much of the macroeconomic disturbances under a floating exchange rate, but still the volatility of the macroeconomic variables under the hypothetical floating exchange rate regime is about the same as under the actual quasi-fixed regime.
Subjects: 
Exchange rate regimes
macroeconomic stability
monetary policy
JEL: 
E52
F31
F41
Document Type: 
Working Paper

Files in This Item:
File
Size
140.78 kB





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