IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v43y1990i1p53-68.html
   My bibliography  Save this article

Explaining the Rise and Decline of the Dollar

Author

Listed:
  • Hoffmann, Johannes
  • Homburg, Stefan

Abstract

An attempt is made to explain theoretically the recent rise and decline of the dollar exchange rate. The notion which attributes the 1980-87 dollar movement to destabilizing speculation is rejected because it is inconsistent with the data. A "refined transfer approach of exchange rate movements" is then presented: the exchange rate reflects the relative price between tradables and nontradables. As elasticities of commodity supplies are greater in the long run than in the short run, an emerging current account deficit will induce an appreciation and a subsequent depreciation. This is what happened to the dollar exchange rate during 1980-87. Copyright 1990 by WWZ and Helbing & Lichtenhahn Verlag AG

Suggested Citation

  • Hoffmann, Johannes & Homburg, Stefan, 1990. "Explaining the Rise and Decline of the Dollar," Kyklos, Wiley Blackwell, vol. 43(1), pages 53-68.
  • Handle: RePEc:bla:kyklos:v:43:y:1990:i:1:p:53-68
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Visser, H., 1993. "The exchange rate as an export-stimulation mechanism," Serie Research Memoranda 0037, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Collinge, Robert A., 1994. "Dampening exchange rate volatility: A micro alternative to macro policies," Journal of Policy Modeling, Elsevier, vol. 16(1), pages 113-118, February.
    3. Hoffmann, Johannes & Homburg, Stefan, 1991. "Explaining the Rise and Decline of the Dollar: A Reply," Kyklos, Wiley Blackwell, vol. 44(3), pages 451-456.
    4. Menkhoff, Lukas, 1991. "Explaining the Rise and Decline of the Dollar: A Note," Kyklos, Wiley Blackwell, vol. 44(3), pages 445-450.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:43:y:1990:i:1:p:53-68. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.