We lay out an empirical and a theoretical model to analyze the effects of non-fundamental exchange rate volatility on economic activity and welfare. In the first part of the paper, the GARCH-SVARmodel is applied to measure empirically the effect of the conditional exogenous exchange rate...

Some regulation is needed to enhance growth and economic welfare, but too much undermines productivity. Generally, the UK seems lightly regulated, especially in its international transactions, and it has a public enterprise sector small in both size and scope. Yet British business has become...