IDEAS home Printed from https://ideas.repec.org/p/isu/genstf/197901010800001099.html
   My bibliography  Save this paper

Capital Controls and Exchange Rate Determination in a Ration Expectations Framework

Author

Listed:
  • Lapan, Harevy E.
  • Enders, Walter

Abstract

Crucial to the comparison of fixed versus flexible exchange rates is the mechanism by which exchange rates are determined when governments do not directly support currencies. The monetary approach to exchange rate determination emphasized that an exchange rate is the relative price of two currencies; the equilibrium rate being that which equates desired and actual money stocks. Within this approach, both monetary and real phenomena affect the equilibrium exchange rate through their influence on the stock demand or supply for currencies. The fundamen tal idea of the monetary approach is that an asset pricing model must be used to examine exchange rate determination.

Suggested Citation

  • Lapan, Harevy E. & Enders, Walter, 1979. "Capital Controls and Exchange Rate Determination in a Ration Expectations Framework," ISU General Staff Papers 197901010800001099, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:197901010800001099
    as

    Download full text from publisher

    File URL: https://dr.lib.iastate.edu/server/api/core/bitstreams/2be4bb59-4bd5-48ae-912a-cf58a0d32493/content
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:isu:genstf:197901010800001099. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Curtis Balmer (email available below). General contact details of provider: https://edirc.repec.org/data/deiasus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.