Home > Research > Publications & Outputs > Inflation and Output Dynamics with a Floating E...

Research

Associated organisational unit

Links

Text available via DOI:

View graph of relations

Inflation and Output Dynamics with a Floating Exchange Rate

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Published

Standard

Inflation and Output Dynamics with a Floating Exchange Rate. / Metcalfe, J.S.; Peel, David.
In: European Economic Review, Vol. 12, No. 1, 02.1979, p. 73-89.

Research output: Contribution to Journal/Magazine › Journal article › peer-review

Harvard

Metcalfe, JS & Peel, D 1979, 'Inflation and Output Dynamics with a Floating Exchange Rate', European Economic Review, vol. 12, no. 1, pp. 73-89. https://doi.org/10.1016/0014-2921(79)90013-8

APA

Metcalfe, J. S., & Peel, D. (1979). Inflation and Output Dynamics with a Floating Exchange Rate. European Economic Review, 12(1), 73-89. https://doi.org/10.1016/0014-2921(79)90013-8

Vancouver

Metcalfe JS, Peel D. Inflation and Output Dynamics with a Floating Exchange Rate. European Economic Review. 1979 Feb;12(1):73-89. doi: 10.1016/0014-2921(79)90013-8

Author

Metcalfe, J.S. ; Peel, David. / Inflation and Output Dynamics with a Floating Exchange Rate. In: European Economic Review. 1979 ; Vol. 12, No. 1. pp. 73-89.

Bibtex

@article{209f518af5944eaf81459861913c6ace,
title = "Inflation and Output Dynamics with a Floating Exchange Rate",
abstract = "The purpose of this paper is to extend a simple monetarist model of price output fluctuations in a closed economy to the case of a small open economy with a floating exchange rate. Trade and capital flows are explicitly incorporated into the model, exchange rate expectations and inflation expectations are treated separately and exchange rate expectations are integrated into the demand for money function. The properties of the model are investigated under the limiting cases of perfect capital mobility and zero capital mobility. Stability conditions and short run price-output trade-offs are derived and the conclusions for cyclical output patterns are deduced. It is also shown how the short run movement of the exchange rate deviates from purchasing power parity in a systematic fashion.",
author = "J.S. Metcalfe and David Peel",
year = "1979",
month = feb,
doi = "10.1016/0014-2921(79)90013-8",
language = "English",
volume = "12",
pages = "73--89",
journal = "European Economic Review",
issn = "0014-2921",
publisher = "Elsevier",
number = "1",

}

RIS

TY - JOUR

T1 - Inflation and Output Dynamics with a Floating Exchange Rate

AU - Metcalfe, J.S.

AU - Peel, David

PY - 1979/2

Y1 - 1979/2

N2 - The purpose of this paper is to extend a simple monetarist model of price output fluctuations in a closed economy to the case of a small open economy with a floating exchange rate. Trade and capital flows are explicitly incorporated into the model, exchange rate expectations and inflation expectations are treated separately and exchange rate expectations are integrated into the demand for money function. The properties of the model are investigated under the limiting cases of perfect capital mobility and zero capital mobility. Stability conditions and short run price-output trade-offs are derived and the conclusions for cyclical output patterns are deduced. It is also shown how the short run movement of the exchange rate deviates from purchasing power parity in a systematic fashion.

AB - The purpose of this paper is to extend a simple monetarist model of price output fluctuations in a closed economy to the case of a small open economy with a floating exchange rate. Trade and capital flows are explicitly incorporated into the model, exchange rate expectations and inflation expectations are treated separately and exchange rate expectations are integrated into the demand for money function. The properties of the model are investigated under the limiting cases of perfect capital mobility and zero capital mobility. Stability conditions and short run price-output trade-offs are derived and the conclusions for cyclical output patterns are deduced. It is also shown how the short run movement of the exchange rate deviates from purchasing power parity in a systematic fashion.

U2 - 10.1016/0014-2921(79)90013-8

DO - 10.1016/0014-2921(79)90013-8

M3 - Journal article

VL - 12

SP - 73

EP - 89

JO - European Economic Review

JF - European Economic Review

SN - 0014-2921

IS - 1

ER -