Modeling Interest Rate Parity: A System Dynamics Approach
The purpose of this paper is to show the superiority of Keynes’ approach by comparing three system dynamics models of the relationship among interest and exchange rates: one based on traditional uncovered interest rate parity, one with risk, and one with forecast confidence. It will be demonstrated that only the last produces patterns consistent with those observed in the real world.
|Date of creation:||Sep 2005|
|Publication status:||Published in Journal of Economic Issues, June 2006, pages 395-403|
|Contact details of provider:|| Web page: http://www.econ.tcu.edu/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- John T. Harvey, 2004.
"Deviations from uncovered interest rate parity: a Post Keynesian explanation,"
Journal of Post Keynesian Economics,
M.E. Sharpe, Inc., vol. 27(1), pages 19-35, October.
- John Harvey, 2003. "Deviations from Uncovered Interest Rate Parity: A Post Keynesian Explanation," Working Papers 200301, Texas Christian University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:tcu:wpaper:200502. 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: (John Harvey)
If references are entirely missing, you can add them using this form.