Exchange Rate Policy in Small Rich Economies

Open Economies Review

Volumn 23, Issue 3, 2012, Pages 421-445

  Breedon, Francis ^a   Pétursson, Thórarinn G ^b   Rose, Andrew K ^c  

^a QUEEN MARY UNIVERSITY OF LONDON   (United Kingdom)

^b CENTRAL BANK OF ICELAND   (Iceland)

^c UNIVERSITY OF CALIFORNIA   (United States)

Author keywords

Exchange rate regimes; Small economies

Indexed keywords

COST; ECONOMIC CONDITIONS; EXCHANGE RATE; MONETARY POLICY;

EID: 84863591160     PISSN: 09237992     EISSN: None     Source Type: Journal    
DOI: 10.1007/s11079-011-9226-0     Document Type: Article

References (42)

1. Aghion P, Howitt P (1998) Endogenous growth theory. MIT Press, Cambridge.
2. Alesina A, Spolaore E (2003) The size of nations. MIT Press, Cambridge.
3. Alesina A, Spolaore E, Wacziarg R (2000) Economic integration and political disintegration. Am Econ Rev 90-5: 1276-1296.
4. Alesina A, Spolaore E, Wacziarg R (2005) Trade, growth and the size of countries. In: Aghion P, Durlauf SN (eds) Handbook of economic growth. Amsterdam, North Holland.
5. Aliber R (1976) The firm under pegged and floating exchange rates. Scand J Econ 78(2): 309-322.
6. Artis M, Ehrmann M (2006) The exchange rate - a shock-absorber or a source of shocks? A study of four open economies. J Int Money Finance 25(6): 874-893.
7. Barro R, Sala-i-Martin X (1995) Economic growth. New York, McGraw-Hill.
8. Baxter M, Stockman A (1989) Business cycles and the exchange rate regime. J Monet Econ 23: 377-400.
9. Black F (1986) Real exchange rates and deviations from purchasing power parity under floating exchange rates. A comment. Carnegie-Rochester Conference Series on Public Policy 25: 215-220.
10. Devereux M, Engel C (2002) Exchange rate pass-through, exchange rate volatility, and exchange rate disconnect. J Monet Econ 49(2002): 913-940.
11. Drazen A (2000) Political economy in macroeconomics. Princeton University Press, Princeton.
12. Easterly W, Kraay A (1999) Small states, small problems? World Bank Policy Research Working Paper No. 2139.
13. Farrant K, Peersman G (2006) Is the exchange rate a shock absorber or a source of shocks? New empirical evidence. J Money, Credit, Bank 38(4): 939-961.
14. Flood R, Rose A (1995) Fixing exchange rates: a virtual quest for fundamentals. J Monet Econ 36(1): 3-37.
15. Flood R, Rose A (1999) Understanding exchange rate volatility without the contrivance of macroeconomics. Econ J 109(459): 660-672.
16. Friedman M (1953) The case for flexible exchange rates, in Essays in Positive Economics. University Press, Chicago.
17. Fujita M, Krugman P, Venables A (1999) The spatial economy. MIT Press, Cambridge.
18. Furceri D, Karras G (2007) Country size and business cycle volatility. Journal of the Japanese and International Economies 21(4): 424-434.
19. Gudmundsson M, Pétursson T, Sighvatsson A (2000) Optimal exchange rate policy: the case of Iceland. In: Zoega G, Gudmundsson M, Herbertsson TT (eds) Macroeconomic policy: small open economies in an era of global integration. University of Iceland Press, Reykjavík.
20. Helpman E, Krugman P (1985) Market structure and foreign trade. MIT Press, Cambridge.
21. Honjo K, Hunt B (2006) Stabilizing inflation in Iceland. IMF Working Paper WP/06/262.
22. Hume D (1752) Idea of a perfect commonwealth (essay).
23. Imam P (2010) Exchange rate choices of microstates. IMF Working Paper WP/10/12.
24. Jeanne O, Rose A (2002) Noise trading and exchange rate regimes. Q J Econ 117(2): 537-569.
25. Jones C (1999) Growth: with or without scale effects? Am Econ Rev 89-2: 139-144.
26. Kaufmann D, Kraay A, Mastruzzi M (2009) Governance Matters VIII: aggregate and individual governance indicators, 1996-2008. World Bank Policy Research Working Paper No. 4978.
27. Krugman P (1980) Scale economies, product differentiation and the pattern of trade. Am Econ Rev 70-5: 950-959.
28. Kuznets S (1960) Economic growth of small nations. In: Robinson EAG (ed) Economic Consequences of the Size of Nations.
29. Levy-Yeyati E, Sturzenegger F (2003) To float or to fix. Am Econ Rev 93(4): 1173-1193.
30. Mussa M (1986) Nominal exchange rate regimes and the behavior of the real exchange rate. Carnegie-Rochester Series on Public Policy 117-213.
31. Myrdal G (1968) Asian drama: an inquiry into the poverty of nations. Pantheon Press, New York. http://www. britannica. com/eb/topic?idxStructId=38624&typeId=13.
32. Obstfeld M, Rogoff K (2001) The six major puzzles in international macroeconomics: is there a common cause? NBER Macroecon Annu 15: 339-412.
33. Olson M (1982) The rise and decline of nations. Yale University Press, New Haven.
34. Pétursson T (2010a) Does inflation targeting lead to excessive exchange rate volatility? Central Bank of Iceland Working Paper No. 43.
35. Pétursson T (2010b) Inflation control around the world: why are some countries more successful than others? In: Cobham D, Eitrheim Ø, Gerlach S, Qvigstad JF (eds) Twenty years of inflation targeting: lessons learned and future prospects. Cambridge University Press, Cambridge.
36. Reinhart C, Rogoff K (2004) The modern history of exchange rate arrangements. Quarterly Journal of Economics CXIX-1, 1-48.
37. Robinson E (1960) Economic consequences of the size of nations. St. Martin's Press, New York).
38. Rose A (2006) Size really doesn't matter. Journal of the Japanese and International Economies 20(4): 482-507.
39. Rose A (2011) Exchange rate regimes in the modern era: fixed, floating, and flaky. J Econ Lit 49(3): 652-672.
40. Shambaugh J (2004) The effect of fixed exchange rates on monetary policy. Q J Econ 119-1: 301-352.
41. Stockman A (1983) Real exchange rates under alternative nominal exchange-rate systems. J Int Money Finance 2(2): 147-166.
42. Ventura J (2005) A global view of economic growth. NBER Working Papers 11296.