Cavallo, Michele; Kisselev, Kate; Perri, Fabrizio; … - 2005
additional distortions and output drops in the short run.
There are plausible parameter values under which fixed exchange rates … dominate flexible exchange
rates from a welfare perspective.
keywords: Balance sheet effects; Currency crises; Exchange rate … have the real exchange rates
shown a tendency to return to their long-run equilibrium values. A similar pattern is observed …