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A Model of Market Clearing Exchange Rates

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  • Rajas Parchure

Abstract

This paper formulates a model of exchange rate determination that describes the market processes by which the foreign exchange markets are cleared and international receipts of countries are brought into equality with their international payments. The model is capable of being explicitly solved for the actual world economy provided the balance of payments data which are routinely collected by central banks and reported to the IMF are arranged by their countrywise origins and destinations.

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  • Rajas Parchure, 2009. "A Model of Market Clearing Exchange Rates," Working Papers id:2153, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:2153
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    References listed on IDEAS

    as
    1. Krugman, Paul, 1980. "Vehicle Currencies and the Structure of International Exchange," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(3), pages 513-526, August.
    2. McKinnon, Ronald I., 1979. "Money in International Exchange: The Convertible Currency System," OUP Catalogue, Oxford University Press, number 9780195024098.
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