Research Discussion Paper – RDP 8610 Equilibrium Exchange Rates and a Popular Model of International Asset Demands: An Inconsistency
July 1986
Contents
- Introduction
- The Model
- Example: Two Real Riskless Assets
- Example: Two Risky Assets
- Example: Many Assets
- The General Case
- Concluding Observations
- Appendix: Derivation of Continuous Time Constraints
- References
Endnote
I am grateful to Ray Ball, Bill Branson, John Campbell, Jeffrey Carmichael, Russell Cooper, Peter Hartley, Peter Kenen, Dilip Madan, John Piggott, Jeff Sheen and Carl Walsh for helpful discussions. The views expressed herein and any remaining errors are my own and should not be attributed to any of the above or to ray employer. [*]