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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…
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exchange equilibrium run rate market new model displaystyle long prices goods short volatility foreign change money dornbusch markets initially real
| Subject | Predicate | Object | Confidence | Src |
|---|---|---|---|---|
| Overshooting model | related to References | Lock-green | 0.60 | section |
| Overshooting model | related to References | Lock-gray-alt-2 | 0.60 | section |
| Overshooting model | related to References | Lock-red-alt-2 | 0.60 | section |
| Overshooting model | related to References | Wikisource-logo | 0.60 | section |
| Overshooting model | related to References | Rudiger Dornbusch | 0.60 | section |
| Overshooting model | related to References | Expectations | 0.60 | section |
| Overshooting model | related to References | Exchange Rate Dynamics | 0.60 | section |
| Overshooting model | related to References | Journal | 0.60 | section |
| Overshooting model | related to References | Political Economy | 0.60 | section |
| Overshooting model | related to References | S2CID | 0.60 | section |
| Overshooting model | related to References | Dornbusch's Overshooting Model After | 0.60 | section |
| Overshooting model | related to References | Twenty-Five Years | 0.60 | section |
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