PPP Exchange-Rate Rules and Macroeconomic Stability
分析将汇率贬值与国内价格水平挂钩的汇率规则如何通过需求和供给两个渠道影响产出与价格稳定的权衡，并发现汇率指数化对稳定性的影响取决于货币政策的适应程度。
Exchange-rate rules that link exchange depreciation to domestic price-level changes are shown to affect the output price-level stability trade-off through two separate channels. On one hand a PPP-oriented exchange-rate policy tends to maintain constant the real exchange rate, thus stabilizing demand. But the exchange-rate policy works also through the supply side, via the prices of imported intermediate goods. Here exchange-rate indexation works to amplify the effect of wage disturbances on prices and potentially on output. In the context of a rational-expectations model with long-term overlapping wage contracts, the analysis shows that the impact of increased indexation on output and price-level stability depends on the extent of monetary accommodation.