Shifts in monetary policy and exchange rate dynamics: is Dornbusch's overshooting hypothesis intact, after all?
How do nominal exchange rates adjust after surprise contractions in monetary policy? While the seminal contribution by Dornbusch provides concise predictions—exchange rates appreciate, i.e., overshoot on impact before depreciating gradually—empirical support for his hypothesis is at best mixed. I ar...
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| Main Author: | |
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| Format: | Article (Journal) |
| Language: | English |
| Published: |
16 May 2020
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| In: |
Journal of international economics
Year: 2020, Volume: 126 |
| ISSN: | 0022-1996 |
| DOI: | 10.1016/j.jinteco.2020.103344 |
| Online Access: | Verlag, lizenzpflichtig, Volltext: https://doi.org/10.1016/j.jinteco.2020.103344 Verlag, lizenzpflichtig, Volltext: http://www.sciencedirect.com/science/article/pii/S002219962030060X 
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| Author Notes: | Sebastian K. Rüth |
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