Are exchange rates macroeconomic phenomena?
AbstractThis paper argues that macroeconomic variables are relatively unimportant determinants of exchange rates. The argument hinges on the fact that bilateral exchange rate volatility differs widely across pairs of countries, but macroeconomic volatility is much more similar across countries, at least at short- and medium-term frequencies. For instance, the French Franc/German Deutschemark exchange rate has dramatically lower volatility than the Canadian dollar/German Deutschemark rate, although France and Canada have approximately equal macroeconomic volatility vis-a-vis Germany.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Federal Reserve Bank of San Francisco in its journal Economic Review.
Volume (Year): (1994)
Issue (Month): ()
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Olivier Jeanne & Andrew K Rose, 1999.
"Noise trading and exchange rate regimes,"
Reserve Bank of New Zealand Discussion Paper Series
G99/2, Reserve Bank of New Zealand.
- Rose, Andrew K, 1996.
"After the Deluge: Do Fixed Exchange Rates Allow Inter-temporal Volatility Tradeoffs?,"
International Journal of Finance & Economics,
John Wiley & Sons, Ltd., vol. 1(1), pages 47-54, January.
- Rose, Andrew K, 1995. "After the Deluge: Do Fixed Exchange Rates Allow Inter-temporal Volatility Trade-offs?," CEPR Discussion Papers 1240, C.E.P.R. Discussion Papers.
- Andrew K. Rose, 1995. "After the Deluge: Do Fixed Exchange Rates Allow Inter-Temporal Volatility Tradeoffs?," NBER Working Papers 5219, National Bureau of Economic Research, Inc.
- Terry Boulter & Celeste Ping Fern Tan, 2000. "The Short Run Impact of Scheduled Macroeconomic Announcements on the Australian Dollar during 1998," School of Economics and Finance Discussion Papers and Working Papers Series 082, School of Economics and Finance, Queensland University of Technology.
- John Sarich, 2006. "What do we know about the real exchange rate? A classical cost of production story," Review of Political Economy, Taylor & Francis Journals, vol. 18(4), pages 469-496.
- M. Nowak & Ketil Hviding & Luca Antonio Ricci, 2004. "Can Higher Reserves Help Reduce Exchange Rate Volatility?," IMF Working Papers 04/189, International Monetary Fund.
- Rotheli, Tobias F., 2002. "Bandwagon effects and run patterns in exchange rates," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 12(2), pages 157-166, April.
- Beng, Gan Wee, 2000. "Exchange-rate policy in East Asia after the fall: how much have things changed?," Journal of Asian Economics, Elsevier, vol. 11(4), pages 403-430.
- Gregory P. Hopper, 1997. "What determines the exchange rate: economic factors or market sentiment?," Business Review, Federal Reserve Bank of Philadelphia, issue Sep, pages 17-29.
- Lafrance, Robert & St-Amant, Pierre, 2000. "Les zones monétaires optimales," L'Actualité Economique, Société Canadienne de Science Economique, vol. 76(4), pages 577-612, dÃ©cembre.
- Terry Boulter, 2000. "Asymmetric Information Arrival and the Short-Run Dynamics of Australian Dollar Volatility: a Mixture of Distributions Approach," School of Economics and Finance Discussion Papers and Working Papers Series 073, School of Economics and Finance, Queensland University of Technology.
- Saadet Kasman & Duygu Ayhan, 2006. "Macroeconomic Volatility under Alternative Exchange Rate Regimes in Turkey," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 6(2), pages 37-58.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Rosenberger).
If references are entirely missing, you can add them using this form.