عنوان

Real disturbances and the exchange rate :

Number

TLets775222

Title Proper

Real disturbances and the exchange rate :

General Material Designation

[Thesis]

First Statement of Responsibility

Sen, Partha

Title Proper by Another Author

theoretical and empirical analysis

Name of Publisher, Distributor, etc.

London School of Economics and Political Science (LSE)

Date of Publication, Distribution, etc.

1984

Dissertation or thesis details and type of degree

Ph.D.

Body granting the degree

London School of Economics and Political Science (LSE)

Text preceding or following the note

1984

Text of Note

This thesis analyses the effects of certain real shocks on the nominal and real exchange rates. The first chapter analyses the impact and long run effects of an open market operation when domestic and foreign assets are imperfect substitutes. The nominal exchange rate overshoots its long run value. The real exchange rate depreciates on impact but appreciates in the long run. The second chapter analyses the effects of monetary disinflation when the government budget constraint is introduced. It is shown that when a cut in the rate of monetary growth is accompanied by a cut in government expenditure we could have a jump depreciation of the real exchange rate. But the costs in terms of output foregone are identical to those in the literature. The third chapter shows that under plausible assumptions an expansionary balanced budget fiscal policy leads to current account surpluses rather than deficits. The fourth (and final) chapter exmaines empirically the effects of a foreign real interest shock on the real exchange rate for the UK.

HC Economic History and Conditions

HG Finance

Sen, Partha

London School of Economics and Political Science (LSE)

Electronic name

p

[Thesis]

276903

a

Y