Expenditure Switching vs. Real Exchange Rate Stabilization: Competing Objectives for Exchange Rate Policy
Expenditure Switching vs. Real Exchange Rate Stabilization: Competing Objectives for Exchange Rate Policy
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支出转换与实际汇率稳定：汇率政策的竞争目标
DOI：
10.2139/ssrn.1009016
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发表时间：
2005
期刊：
影响因子：
--
通讯作者：
Charles M. Engel
中科院分区：
文献类型：
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作者：
Michael B. Devereux;Charles M. Engel
本文认为，汇率政策是为了减少消费分配扭曲而平滑真实的汇率波动的愿望与为了促进贸易条件调整而允许名义汇率灵活性的需要之间的权衡。我们表明，最优名义汇率波动将反映这些竞争的目标。汇率应对冲击的程度的关键决定因素将取决于价格粘性的程度和来源、本国商品和外国商品之间的替代弹性以及生产中的本国偏好程度。从数量上看，我们发现最优汇率波动率应显著低于仅基于贸易条件考虑的推断。此外，我们发现价格粘性与最优汇率波动率之间的关系可能是非单调的。
This paper develops a view of exchange rate policy as a trade-off between the desire to smooth fluctuations in real exchange rates so as to reduce distortions in consumption allocations, and the need to allow flexibility in the nominal exchange rate so as to facilitate terms of trade adjustment. We show that optimal nominal exchange rate volatility will reflect these competing objectives. The key determinants of how much the exchange rate should respond to shocks will depend on the extent and source of price stickiness, the elasticity of substitution between home and foreign goods, and the amount of home bias in production. Quantitatively, we find the optimal exchange rate volatility should be significantly less than would be inferred based solely on terms of trade considerations. Moreover, we find that the relationship between price stickiness and optimal exchange rate volatility may be non-monotonic.