Balance-of-payments crises and monetary policy reactions in a model with imperfect substitutability between domestic and foreign bonds
Willman, Alpo (19.11.1987)
Numero
16/1987Julkaisija
Suomen PankkiBank of Finland
1987
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:bof-202107201336Tiivistelmä
We show that if domestic and foreign bonds are imperfect substitutes for each other and the exchange rate is fixed, then, unlike under the perfect substitutability assumption, uncertainty about monetary policy reactions affects the timing of balance-of-payments crises.