Download or read book The Role of Private Financial Wealth in a Portfolio Model written by A. Calderon-Madrid and published by Springer. This book was released on 1995-10-06 with total page 126 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book considers the implications for the dynamics of the exchange rate and private financial wealth. In a model in which fiscal imbalances are allowed to change the level of domestic public indebtedness. The analysis raises the possibility of an initial appreciation followed by a depreciation and a final exchange rate appreciation. It also highlights the importance that adjustments in the stock of privately-held financial assets have for the determination and speed of medium-run effects of shocks to the economy.