Greenwood, Robin, Samuel G. Hanson, Jeremy C. Stein, and Adi Sunderam. "A Quantity-Driven Theory of Term Premia and Exchange Rates." Quarterly Journal of Economics 138, no. 4 (November 2023): ...

Its aim is to make some of the economic research being produced in the International Monetary Fund on topical issues accessible ... per capita GDP growth was slightly faster under floating regimes.

The core idea is that the sluggishness of domestic prices and wages forces the exchange rate to be the shock absorber for monetary policy. Dornbusch's theory, which he spiced up by incorporating the ...