Exchange Rate Dynamics with Sluggish Prices under Alternative Price-Adjustment Rules
研究在移动长期均衡模型中，不同价格调整机制对汇率行为的影响，证明Mussa规则与Barro-Grossman规则在实证上无法区分，并论证后者在正确解释下具有动态稳定性。
This paper studies exchange rate behavior in models with moving longrun equilibria incorporating alternative price-adjustment mechanisms.The paper demonstrates that price-adjustment rules proposed by Mussa and by Barro and Grossman yield models that are empirically indistinguishable from each other.For speeds of goods-market adjustment that are "too fast," the Barro-Grossman rule appears to induce instability; but we argue that when the rule is interpreted properly, models incorporating it are dynamically stable regardless of the speed at which disequilibrium is eliminated.The Barro-Grossman pricing scheme is shown to be a natural generalization, to a setting of moving long-run equilibria, of less versatile schemes proposed in earlier literature on exchange rate dynamics.