Uncertainty, exchange rate regimes, and national price levels
By: Christian Broda.
Contributors: Federal Reserve Bank of New York.
Series: Staff reports ;; no. 151; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 151.
Publisher: Federal Reserve Bank of New York
Published: 2002
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: Prices -- Econometric models.; Foreign exchange rates -- Econometric models.
Description: "Large differences in national price levels exist across countries.  In this paper, I develop a general equilibrium model predicting that these differences should be related to countries' exchange rate regimes.  My empirical findings confirm that countries with fixed exchange rate regimes have higher national price levels than countries with flexible regimes.  At the disaggregate level, the relationship between exchange rate regimes and national price levels is stronger for nontraded goods than for traded goods.  I also find that measuring the misalignment in national price levels around times of regime shifts without considering a break in its equilibrium value results in the overestimation of the true misalignment"--Federal Reserve Bank of New York web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 3/1/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.