000			02700cam a22003257 4500
001			w0748
003			NBER
005			20211020115411.0
006			m o d
007			cr cnu||||||||
008			210910s1981 mau fo 000 0 eng d
100	1		_aFrenkel, Jacob A. _910746
245	1	0	_aAspects of the Optimal Management of Exchange Rates / _cJacob A. Frenkel, Joshua Aizenman.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c1981.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w0748
500			_aSeptember 1981.
520	3		_aThis paper analyzes aspects of the economics of the optimal management of exchange rates. It shows that the choice of the optimal exchange rate regime depends on the nature and the origin of the stochastic shocks that affect the economy. Generally, the higher is the variance of real shocks which affect the supply of goods, the larger becomes the desirability of fixity of exchange rates. The rationale for that implication is that the balance of payments serves as a shock absorber which mitigates the effect of real shocks on consumption. The importance of this factor diminishes the larger is the economy's access to world capital markets. On the other hand, the desirability of exchange rate flexibility increases the larger are the variances of the shocks to the demand for money, to the supply of money, to foreign prices and to purchasing power parities. All of these shocks exert a similar effect and their sum is referred to as the "effective monetary shock." It is also shown that the desirability of exchange rate flexibility increases the larger is the propensity to save out of transitory income. When the analysis is extended to an economy which produces traded and non-traded goods it is shown that the desirability of exchange rate flexibility diminishes the higher is the share of non-traded goods relative to traded goods and the lower are the elasticities of demand and supply of the two goods.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aF - International Economics _2Journal of Economic Literature class.
700	1		_aAizenman, Joshua. _94613
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w0748.
856	4	0	_uhttps://www.nber.org/papers/w0748
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w0748
942			_2ddc _cW-PAPER
999			_c347844 _d306406