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Exchange rate regimes and macroeconomic stability : the case of Sweden 1972-1996
Uppsala University, Humanistisk-samhällsvetenskapliga vetenskapsområdet, Faculty of Social Sciences, Department of Economics.
2000 (English)Report (Other academic)
Abstract [en]

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.

Place, publisher, year, edition, pages
Uppsala: Nationalekonomiska institutionen , 2000. , 35 p.
Series
Working paper, ISSN 0284-2904
Keyword [en]
Economics
Keyword [sv]
Nationalekonomi
National Category
Economics
Identifiers
URN: urn:nbn:se:uu:diva-2503ISBN: 99-3412793-8 OAI: oai:DiVA.org:uu-2503DiVA: diva2:128764
Available from: 2000-01-01 Created: 2000-01-01

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CiteExportLink to record
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Citation style
  • apa
  • ieee
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Language
  • de-DE
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  • nn-NB
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Output format
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