Talk:Overshooting model

/Archive 1

i think there is a mistake
in the graph, shouldnt the IS (Q(1) > Q(0)) - curve be ABOVE the IS (Q(0)) - curve? IS depends on (..,NX(Q)) - and with a higher Q you got more NX you got a higher IS-curve Cospike (talk) 12:25, 22 February 2012 (UTC)

Dr. Vitale's comment on this article
Dr. Vitale has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

"I have few comments. In the preamble (which I think is very good) I would add that Dornbusch's model addresses a puzzle which traditional monetarist models had difficulty explaining, that is that the volatility of the nominal exchange is way larger than that of the inflation rate differentials.

In general I think the mathematical presentation of the model could improve. Here I list some suggestions.

In describing Assumptions 1 to 3 it would be useful to clarify the notation providing clear definitions for all variables. The notation is introduced after the assumptions rather than before. The notation could also improve. I do not know whether you could use LaTeX, but it would help.

Equations [1] to [5] are hard to read and not entirely consistent with the notation (see for instance the expectations of the exchange rate depreciation). Once again this would not happen using LaTeX.

In discussion the long run equilibrium it may be useful to mention that it is consistent with the quantitative theory of money and with the monetarist paradigm.

The part with which I struggle most is the that containing the analytics for the short-run dynamics. What are the arrows for? In addition the graphs deserve a detailed explanation."

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

We believe Dr. Vitale has expertise on the topic of this article, since he has published relevant scholarly research:


 * Reference : Vitale, Paolo, 2007. "Optimal Informed Trading in the Foreign Exchange Market," CEPR Discussion Papers 6553, C.E.P.R. Discussion Papers.

ExpertIdeasBot (talk) 20:25, 24 September 2016 (UTC)