Output Variability under Monetary Policy and Exchange Rate Rules
比较固定汇率与浮动汇率制度下，哪种规则能让国内产出更稳定。研究发现，没有一种规则总是更好，但如果某个市场的冲击特别大，则一种规则会优于另一种。
This paper examines the controversy concerning the relative desirability of fixed versus flexible exchange rates by examining whether a country can achieve a smaller variance of domestic output around its full employment path operating under an exchange rate rule or under a money supply rule. The paper finds that neither policy will always dominate the other. However, it does find that if shocks in one market of the economy are large relative to shocks to other markets, then one type of rule can be shown to dominate the other.