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A Note on Exchange Rate Trend-Stationarity * |
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| Authors: | Peter S. Sephton |
| Affiliation: | University of New Brunswick |
| Abstract: | This note extends Goodfriend (1987) to a small open economy to demonstrate that the exchange rate may be non-trend-stationary if the monetary authorities attempt to smooth both the price level and the exchange rate. [431] |
| Keywords: | |