Exchange rate policy under sovereign default risk |
| |
| Authors: | Andreas Schabert |
| |
| Institution: | TU Dortmund University, Department of Economics, Vogelpothsweg 87, 44227 Dortmund, Germany |
| |
| Abstract: | We examine monetary policy options for a small open economy where sovereign default might occur due to intertemporal insolvency. Under interest rate policy and floating exchange rates the equilibrium is indetermined. Under a fixed exchange rate the equilibrium is uniquely determined and independent of sovereign default. |
| |
| Keywords: | E52 E63 F31 F41 |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
