A stochastic, two-country, neoclassical, rational-expectations model with sticky prices--optimally set by monopolistically competitive firms--and possible excess capacity is developed to examine international spillover effects on output of monetary disturbances. The Mundell-Fleming model...

Devaluation expectations for the Swedish krona are estimated for the period 1985 to 1992 using daily data for exchange rates and interest rates. The 90 percent confidence intervals for these estimates obtained by the 'drift-adjustment' method suggested by Giuseppe Bertola and Lars E. O. Svensson...