Exchange Rate Overshooting
In its initial depreciation after a money supply rise,the exchange rate jumps from E1 ($/€）up to E2($/€）, a depreciation greater than its long-run depreciation from E1 ($/€）to E3($/€）(see Figure 14-13d).The exchange rate is said to overshoot when its immediate response to a disturbance is greater than its long-run response.Exchange rate overshooting is an imporant phenomenon because it halps explain why exchange rates move so sharply from day to day.
The econmic explanation of overshooting comes from the interest parity condition.The explanation is easiest to grasp if we assume that before the money supply increase first
occurs,no change in the dollar/euro exchange rate is expected,so that R1 ($) equals R(€),the
given interest rate on euro deposits.A perm... (查看原文)
Overshooting is a direct consequence of the short-run rigidity of the price level.In a hypothetical world where the price level could adjust immediately to its new long-run level after a money supply increase,the dollar interest rate would not fall because prices would adjust
immediately and prevent the real money supply from rising.Thus,there would be no need for overshooting to maintain equilibrium in the foreign exchange market.The exchange
rate would maintain equilibrium simply by jumping to its new long-run level right away. (查看原文)
![[美国] 保罗·克鲁格曼](https://img9.doubanio.com/view/personage/m/public/8e212079f9f1c503f8cfdaa682bd8ec6.jpg)
保罗·克鲁格曼 作者
yubaoliang
4 有用 伊卡洛斯 2017-01-19 21:21:13
贸易（实体）+金融（货币）
0 有用 海🌊 2025-01-09 14:06:44 北京
教材，只记得老师讲得挺好的了。
3 有用 tzr 2019-01-21 09:59:56
2018年12月读书|重读课本系列，只有实践才能感受到曾经学过理论的重要性。翻译很好，书还会留着以后多读读。
1 有用 Pilgrimage.Xu 2022-01-03 22:31:24
汇率（预期）、利率平价、外汇市场干预（冲销）、购买力平价、暂时性和永久性货币供给扩张的短期和长期影响、超调理论（& 楞次定律/勒夏特列原理）、财政与货币政策的有效性和作用机制分析、J曲线、浮动与固定汇率制、金本位制、布森体系→AFC和欧债危机的多重分析。 张老师是个有意思的人！国际金融的理论还需结合大的宏观经政基本面的实践加以理解，理解中国问题也更需跳出教科书，结合实际，考虑如何应对/迎接汇率升值... 汇率（预期）、利率平价、外汇市场干预（冲销）、购买力平价、暂时性和永久性货币供给扩张的短期和长期影响、超调理论（& 楞次定律/勒夏特列原理）、财政与货币政策的有效性和作用机制分析、J曲线、浮动与固定汇率制、金本位制、布森体系→AFC和欧债危机的多重分析。 张老师是个有意思的人！国际金融的理论还需结合大的宏观经政基本面的实践加以理解，理解中国问题也更需跳出教科书，结合实际，考虑如何应对/迎接汇率升值的问题。 (展开)
0 有用 小红 2019-04-15 21:53:52
案头书 关于国际金融想要了解的细节都非常清晰。对经济学的各种模型依然理解无能，大概是自己缺乏数理思维，太依赖联系和强调直观的“现实意义”。唉啊经济学真的要成为我的阿喀琉斯之踵了TAT