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The Crawling Peg and Exchange Rate Uncertainty

In: Exchange Rate Rules

Author

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  • Donald V. Coes

Abstract

The recognition of the potential effects of uncertainty on economic behaviour has had a strong impact in the past decade on international economic theory, which now abounds with comparisons of behaviour under uncertainty with the predictions of traditional non-stochastic models (Batra, 1975; Brainard and Cooper, 1968; Helpman and Razin, 1978; Kemp and liviatan, 1973; Mayer, 1975; Ruffin 1974a and 1974b; and Turnovsky, 1974). Despite the generally convincing theoretical demonstration that uncertainty can matter, however, empirical support for the view that it in fact does matter is still scanty and unsatisfactory.

Suggested Citation

  • Donald V. Coes, 1981. "The Crawling Peg and Exchange Rate Uncertainty," Palgrave Macmillan Books, in: John Williamson (ed.), Exchange Rate Rules, chapter 5, pages 113-139, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-05166-3_6
    DOI: 10.1007/978-1-349-05166-3_6
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