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시장 불완전성과 화폐의 교환성

김경수 / 함상문

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Abstract

This paper examines the welfare property of opening trade in country-specific currencies with incomplete markets and a flexible exchange rate system. In the context of a two-country overlapping generations model, we analyze the properties of steady-state equilibria when the source of uncertainty is either purely monetary or purely real. With monetary shocks, asset trade does not fully pool exchange rate risk which is not even present in portfollo autarky. As a result asset trade must make the young generation of at least one country worst off. With real shocks, the result is diffeent. Asset trade can make all members of the young generation better off. This paper also examines the issue of the exchange rate indeterminacy originally raised by Kareken and Wallace (1981). With monetary shocks, currencies become imperfect substitutes and the exchange rate is determinate. However, with purely real shocks, currencies become perfect substitutes and the exchange rate indeterminacy results as in Kareken and Wallace (1981).

Issue Date
2003-08
Publisher
한국국제경제학회
Keywords
시장 불완전성, 화폐의 교환성, 환율의 부정성, Incomplete Markets, Currency Convertibility, Exchange Rate Indeterminacy
Citation
국제경제연구, v.9, no.2, pp.31 - 48, 2003
URL
http://210.101.116.36/JournalSearch/ISS_Detail.asp?key=2069030&tname=kiss2002&code=
Journal Title
국제경제연구
Start Page
31
End Page
48
ISSN
1229-9537
Language
Korean
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