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Overshooting model
also called Exchange rate overshooting and has one more synonym

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  1. That is to say, the position of the IS curve is determined by the volume of injections into the flow of income and by the competitiveness of Home country output measured by the real exchange rate

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on March 23, 2009
  2. ⅓ The Dornbusch Overshooting Model or Exchange rate overshooting, first established by economist Rudi Dornbusch, aims to explain why exchange rates have a high variance

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on March 23, 2009
  3. The key insight of the model is that lags in some parts of the economy can induce compensating volatility in others

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on March 23, 2009
  4. Rejecting this view, Dornbusch argued that volatility is in fact a far more fundamental property than that

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on March 23, 2009
  5. Dornbusch developed this model back when many economists held the view that ideal markets should reach equilibrium and stay there

    Source: Wikipedia Unhappy with this fact? more info
    created by user picturefactobot on March 23, 2009
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