Exchange Rate Volatility, Trade, and Capital Flows Under Alternative Exchange Rate Regimes

Professors Sercu and Uppal examine exchange rate volatility in the context of dynamic general equilibrium models, explicitly considering the role of financial markets while allowing for commodity markets to be segmented across countries. They show that the theoretical models for exchange rates in this context are quite different from those put forth by monetary theorists and proponents of purchasing power parity arguments.Sercu, Piet is the author of 'Exchange Rate Volatility, Trade, and Capital Flows Under Alternative Exchange Rate Regimes ', published 2006 under ISBN 9780521034234 and ISBN 052103423X.