Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2000:25: Exchange Rate Regimes and Macroeconomic Stability: The Case of Sweden 1972-1996

Anders Bergvall ()
Additional contact information
Anders Bergvall: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: In this paper I investigate the relevance of the exchange rate regime for macroeconomic stability. I simulate hypothetical macroeconomic developments under different regimes in Sweden during the period 1972 -1996. The main question is how stable output would have been if Sweden had had a floating exchange rate regime. Would it have been better with a floating exchange rate than the actual quasi-fixed regime? Also the development with an irrevocably fixed exchange rate is investigated. The results indicate that the central bank can stabilize much of the macroeconomic disturbances under a floating exchange rate, but still the volatility of the macroeconomic variables under the hypothetical floating exchange rate regime is about the same as under the actual quasi-fixed regime.

Keywords: Exchange rate regimes; macroeconomic stability; monetary policy

JEL-codes: E52; F31; F41

25 pages, December 15, 2000

Full text files

wp2000_25ny.pdf PDF-file Updated version
2000wp25.pdf PDF-file Original version

Download statistics

Questions (including download problems) about the papers in this series should be directed to Ulrika Ă–jdeby ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2020-02-16 18:58:29.