Advanced search
Publication Cover
Applied Economics Letters Volume 24, 2017 - Issue 13
Submit an article Journal homepage
248
Views
4
CrossRef citations to date
0
Altmetric
Original Articles

A possible explanation of the ‘Exchange Rate Disconnect Puzzle’: a common solution to three macroeconomic puzzles?

Charles Yuji HoriokaAsian Growth Research Institute, Kitakyushu, Japan;Institute of Social and Economic Research, Osaka University, Osaka, Japan;National Bureau of Economic Research, Cambridge, MA, USACorrespondence[email protected]
View further author information
&
Nicholas FordWolfson College, Cambridge University, Cambridge, UKView further author information
Pages 918-922 | Published online: 11 Oct 2016

References

  • Branson, W. H. 1977. “Asset Markets and Relative Prices in Exchange Rate Determination.” Sozialwissenschaftliche Annalen. Band 1.
  • Dornbusch, R. 1976. “Expectations and Exchange Rate Dynamics.” Journal of Political Economy 84 (6): 1161–1176. doi:10.1086/260506.
  • Feldstein, M. S., and C. Y. Horioka. 1980. “Domestic Saving and International Capital Flows.” The Economic Journal 90 (358): 314–329. doi:10.2307/2231790.
  • Flood, R. P., and A. K. Rose. 1995. “Fixing Exchange Rates: A Virtual Quest for Fundamentals.” Journal of Monetary Economics 36 (1): 3–37. doi:10.1016/0304-3932(95)01210-4.
  • Flood, R. P., and A. K. Rose. 1999. “Understanding Exchange Rate Volatility without the Contrivance of Macroeconomics.” Economic Journal 109 (459): 660–672. doi:10.1111/ecoj.1999.109.issue-459.
  • Ford, N. 2015. A Solution to the Feldstein-Horioka Puzzle, and an Exchange Rate Model that Works. Cambridge, UK: mimeo., Wolfson College, Cambridge University.
  • Ford, N., and C. Y. Horioka. 2016a. “The ‘Real’ Explanation of the Feldstein-Horioka Puzzle.” Applied Economics Letters. doi:10.1080/13504851.2016.1164814.
  • Ford, N., and C. Y. Horioka. 2016b. “The ‘Real’ Explanation of the PPP Puzzle.” Applied Economics Letters. doi:10.1080/13504851.2016.1186790.
  • MacDonald, R. 1999. “Exchange Rate Behaviour: Are Fundamentals Important?” Economic Journal 109 (459): 673–691. doi:10.1111/ecoj.1999.109.issue-459.
  • Meese, R. A., and K. Rogoff. 1983. “Empirical Exchange Rate Models of the Seventies: Do They Fit Out of Sample?” Journal of International Economics 14 (1–2): 3–24. doi:10.1016/0022-1996(83)90017-X.
  • Obstfeld, M., and K. Rogoff. 2000. “The Six Major Puzzles in Macroeconomics: Is There a Common Cause?” In NBER Macroeconomics Annual 2000, edited by B. S. Bernanke, and K. Rogoff, 339–412. Vol. 15. Cambridge, MA: MIT Press.
  • Podkaminer, L. 2013. “Persistent Gaps between Purchasing Power Parities and Exchange Rates under the Law of One Price: A Puzzle (Partly) Explained?” Bank I Kredyt 44 (4): 333–352.
  • Taylor, A. M., and M. P. Taylor. 2004. “The Purchasing Power Parity Debate.” Journal of Economic Perspectives 18 (4): 135–158. doi:10.1257/0895330042632744.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Order Reprints Request Corporate Permissions

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

Request Academic Permissions

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.

Related research

People also read lists articles that other readers of this article have read.

Recommended articles lists articles that we recommend and is powered by our AI driven recommendation engine.

Cited by lists all citing articles based on Crossref citations.
Articles with the Crossref icon will open in a new tab.