全球智库信息集成服务系统(G2TT): DP2907 Foreign Direct Investment, Agglomerations and Demonstration Effects: An Empirical Investigation

G2TT

来源类型	Discussion paper
规范类型	论文
来源ID	DP2907
	DP2907 Foreign Direct Investment, Agglomerations and Demonstration Effects: An Empirical Investigation
	Frank Barry; Eric Strobl; Holger Görg
发表日期	2001-08-01
出版年	2001
语种	英语
摘要	A classic argument for flexible exchange rates is that the exchange rate plays a ?shock-absorber' role in an open economy hit by country specific shocks. This Paper presents a sharp counterexample to this argument within a very simple open economy model. Countries are subject to unpredictable shocks to world demand for their goods. Efficient adjustment is prevented, both by sticky nominal wages and by the absence of a market for hedging consumption risk across countries. A flexible exchange rate policy, by stabilizing domestic prices, fully stabilizes output and replicates the flexible wage outcome, acting perfectly as a ?shock absorber?. Despite this, a policy that fixes the exchange rate may be welfare superior, even though fixed exchange rates cause GDP to fluctuate away from the flexible wage outcome. Moreover, an optimal monetary rule in this environment would always dampen exchange rate movements, and may even be a fixed exchange rate.
主题	International Macroeconomics
关键词	Risk sharing Fixed exchange rates Flexible exchange rates
URL	https://cepr.org/publications/dp2907
来源智库	Centre for Economic Policy Research (United Kingdom)
资源类型	智库出版物
条目标识符	http://119.78.100.153/handle/2XGU8XDN/531947
推荐引用方式 GB/T 7714	Frank Barry,Eric Strobl,Holger Görg. DP2907 Foreign Direct Investment, Agglomerations and Demonstration Effects: An Empirical Investigation. 2001.