Is bad news about inflation good news for exchange rate? /

We show in a simple -- but robust -- theoretical monetary exchange rate model that the sign of the covariance between an inflation surprise and the nominal exchange rate can tell us something about how monetary policy is conducted. Specifically, we show that 'bad news' about inflation -- t...

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Bibliographic Details
Main Author: Clarida, Richard H.
Other Authors: Waldman, Daniel
Format: Book
Language:English
Published: Cambridge, Mass. : National Bureau of Economic Research, 2007
Series:NBER working paper series ; no. 13010
Subjects:
Online Access:http://www.nber.org/papers/w13010.pdf?new_window=1