A Monetary Model of Exchange Market Pressure Applied to the Post-War Canadian Experience

Abstract
The monetary approach to the balance of payments has received considerable attention. However, most the empirical studies employ models of a small country with fixed exchange rates. Without relying on the small-country assumption, we derive a model to explain a measure of exchange market pressure that incorporates both exchange rate movements and official intervention. the models is used to analyze the post-war Canadian experience.

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