A Theory of Exchange Rate Determination
This paper develops an equilibrium model of the determination of exchange rates and prices of goods. Changes in relative prices of goods, due to supply or demand shifts, induce changes in exchange rates and deviations from purchasing power parity. These changes may create a correlation between the e...
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| Veröffentlicht in: | The Journal of political economy 1980-08, Vol.88 (4), p.673-698 |
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| container_end_page | 698 |
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| container_issue | 4 |
| container_start_page | 673 |
| container_title | The Journal of political economy |
| container_volume | 88 |
| creator | Stockman, Alan C. |
| description | This paper develops an equilibrium model of the determination of exchange rates and prices of goods. Changes in relative prices of goods, due to supply or demand shifts, induce changes in exchange rates and deviations from purchasing power parity. These changes may create a correlation between the exchange rate and the terms of trade, but this correlation cannot be exploited by the government to affect the terms of trade by foreign exchange market operations. |
| doi_str_mv | 10.1086/260897 |
| format | Article |
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These changes may create a correlation between the exchange rate and the terms of trade, but this correlation cannot be exploited by the government to affect the terms of trade by foreign exchange market operations.</description><identifier>ISSN: 0022-3808</identifier><identifier>EISSN: 1537-534X</identifier><identifier>DOI: 10.1086/260897</identifier><identifier>CODEN: JLPEAR</identifier><language>eng</language><publisher>Chicago: The University of Chicago Press</publisher><subject>Changes ; Economic models ; Exchange rates ; Foreign exchange ; Foreign exchange markets ; Foreign exchange rates ; International trade ; Money ; Money demand ; Optimization ; Parity ; Political economy ; Price indexes ; Price levels ; Purchasing power ; Purchasing power parity ; Relative prices ; State vectors ; Terms of trade</subject><ispartof>The Journal of political economy, 1980-08, Vol.88 (4), p.673-698</ispartof><rights>Copyright 1980 The University of Chicago</rights><rights>Copyright University of Chicago, acting through its Press Aug 1980</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c292t-aa15aa241667caf2373d3e39f7d13c1728289e3672ce7e53bc92b826188a29113</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/1837308$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/1837308$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,776,780,799,27848,27903,27904,57995,58228</link.rule.ids></links><search><creatorcontrib>Stockman, Alan C.</creatorcontrib><title>A Theory of Exchange Rate Determination</title><title>The Journal of political economy</title><description>This paper develops an equilibrium model of the determination of exchange rates and prices of goods. 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| fulltext | fulltext |
| identifier | ISSN: 0022-3808 |
| ispartof | The Journal of political economy, 1980-08, Vol.88 (4), p.673-698 |
| issn | 0022-3808 1537-534X |
| language | eng |
| recordid | cdi_proquest_journals_195413019 |
| source | Business Source Complete; Periodicals Index Online; Jstor Complete Legacy |
| subjects | Changes Economic models Exchange rates Foreign exchange Foreign exchange markets Foreign exchange rates International trade Money Money demand Optimization Parity Political economy Price indexes Price levels Purchasing power Purchasing power parity Relative prices State vectors Terms of trade |
| title | A Theory of Exchange Rate Determination |
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