Is Bad News About Inflation Good News for the Exchange Rate

By R. Clarida, D. Waldman. 2007

162 citations recorded by the source corpus.

How researchers see this paper

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What Does the Yield Curve Tell Us about Exchange Rate Predictability? (2013, unknown): “Our result is consistent with observations made in more recent papers, such as Eichenbaum and Evans (1995), Gourinchas and Tornell (2004), and Clarida and Waldman (2008).”
Out-of-sample exchange rate predictability with Taylor rule fundamentals (2009, unknown): “Clarida and Waldman (2008) show that, under optimal monetary policy where the Taylor principle is satisfied, a surprise increase in U.S.”
Investor Overconfidence and the Forward Premium Puzzle (2011, unknown): “This implies that in some parameterizations our model is consistent with evidence that in some cases unanticipated but temporary increases in inflation are associated with short-term exchange rate appreciation (see, for example, Andersen et. al., 2003 and Clarida and Waldman, 2008).”
Taylor Rules with Real-Time Data: A Tale of Two Countries and One Exchange Rate (2008, methodology): “By defining (11) 17 Clarida and Waldman (2007) construct a model that combines a Taylor rule with a Phillips curve to derive conditions under which a surprise increase in U.S. inflation will appreciate the exchange rate, and use event study methodology to test the model.”