Chartists, fundamentalists and exchange rate dynamics

Autor:	Jay H. Levin
Rok vydání:	1997
Předmět:	Economics and Econometrics Exchange rate Accounting Homogeneous group Economics Asset (economics) Monetary economics Finance Economic bubble
Zdroj:	International Journal of Finance & Economics. 2:281-290
ISSN:	1099-1158 1076-9307
DOI:	10.1002/(sici)1099-1158(199710)2:4<281::aid-jfe56>3.0.co;2-m
Popis:	This paper develops two models in which chartist and fundamentalist asset holders interact to produce exchange rate movements in response to monetary expansion. In the first model, with two groups of asset holders, the dynamic behavior of the system is the same as in the Dornbusch model even though risk-neutral chartist asset holders with destabilizing extrapolative expectations are operating there. However, in the model with a homogeneous group of asset holders maintaining both chartist and fundamentalist expectations, the exchange rate will most likely move to an unstable path, and a speculative bubble that is likely to be temporary will develop. © 1997 John Wiley & Sons, Ltd.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::ec804454af518486b889543b1c01a3c1 https://doi.org/10.1002/(sici)1099-1158(199710)2:4<281::aid-jfe56>3.0.co Zobrazit plný text záznamu Plný text ve formátu PDF