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Title: |
The Choice of an Optimal Exchange Rate System
for a Small Country under the Three Good and Three Country Model |
| Author: |
Son, Iltae |
| Author
Affiliation: |
Kyung Hee U |
| Source: |
International Economic Journal, Summer 1987, v. 1, no. 2, pp. 25-45 |
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Publication Date: |
Summer 1987 |
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Abstract: |
The purpose of this paper is to analyze
the problem of the choice of an optimal exchange rate system for a small
country in terms of insulation from foreign real and monetary
disturbances and in terms of minimizing the output variance around
desired output. We employ a simple open macroeconomic model which can
represent a small country's economy where the production of domestic
output is dependent upon the intermediate goods from the rest of the
world and where there are a variety of controls over foreign exchange
and capital flows by a monetary authority. |
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