Reverse shooting of exchange rates

C-Tier
Journal: Economic Modeling
Year: 2013
Volume: 33
Issue: C
Pages: 71-76

Score contribution per author:

1.009 = (α=2.02 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Reverse shooting of the exchange rate has been put forward in this paper by scrutinizing the adjustment and evolution of the exchange rate towards its new long-run equilibrium level following a change in money supply. Joint and sequential effects of covered interest rate parity and the sticky price on the rise, from the short-term through the long-run horizon, results in a feature of reverse shooting of the exchange rate. Regardless of what the immediate response of the exchange rate to the change in money supply can be argued for, reverse shooting homogenizes the evolution path of exchange rate adjustment and movement from different views.

Technical Details

RePEc Handle
repec:eee:ecmode:v:33:y:2013:i:c:p:71-76
Journal Field
General
Author Count
1
Added to Database
2026-01-29