Overshooting model
id:
overshooting-model-304-12821385
title:
Overshooting model
text:
The overshooting model, or the exchange rate overshoot hypothesis, first developed by economist Rudi Dornbusch, is a theoretical explanation for high levels of exchange rate volatility. The key features of the model include the assumptions that goods' prices are sticky, or slow to change, in the short run, but the prices of currencies are flexible, that arbitrage in asset markets holds, via the uncovered interest parity equation, and that expectations of exchange rate changes are "consistent": t
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wiki
category slug:
encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Overshooting_model
date created:
date modified:
2024-01-15T11:49:15Z
main entity:
{"identifier":"Q7113966","url":"https://www.wikidata.org/entity/Q7113966"}
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fields total:
13
integrity:
13