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Exchange rate regimes in Latin America
Exchange rate regimes in Latin America

NBER WORKING PAPER SERIES WHAT HURTS MOST? Carmen M. Reinhart
NBER WORKING PAPER SERIES WHAT HURTS MOST? Carmen M. Reinhart

... more variability in interest rates and potentially spending. Under a system of target zones, then, relative prices for emerging market economies may become more stable in an environment of predictable G-3 exchange rates, but greater interest rate volatility may make debt-servicing costs less predict ...
The Eurosystem`s bond purchases and the exchange rate of the
The Eurosystem`s bond purchases and the exchange rate of the

... to remain expansionary for longer than previously expected and that future money market rates, too, will therefore stay low for longer. This, in turn, would bring current capital market rates under pressure. Much like with the portfolio rebalancing channel, such developments would tend to provoke ne ...
Gold, the renminbi and the multi
Gold, the renminbi and the multi

... governments’ determination to learn from their own and others’ past mistakes. Third, China and Asia have over-saved, partly because of massive perceived shortcomings in the International Monetary Fund’s intervention in the 1997-98 Asian crisis. These countries have amassed huge surpluses in the form ...
Determinants of Foreign Portfolio Inflows
Determinants of Foreign Portfolio Inflows

... against the loan. In June 1991, following the general elections, the new government came to power inheriting one of the most complex trade regimes in Indian history. The newly established government, as stated by Krishna & Mitra (1998), had to sort out the problem of severe restrictions on import ex ...
PDF
PDF

... derogation”, and has to be carried out by both the Commission and the European Central Bank. The Report shows that the nine countries and also Lithuania are making progress towards convergence, though at different paces. The inflation reference value was calculated to be 2.8 percent in October 2006 ...
Pass-through and Exposure
Pass-through and Exposure

... exporting and importing firms. Firms differ in the extent to which they “pass-through” changes in exchange rates into the prices they charge in foreign markets. They also differ in their “exposure” to exchange rates--the responsiveness of their profits to changes in exchange rates. Previous papers h ...
Ireland in EMU: more shocks, less insulation? Patrick Honohan The World Bank
Ireland in EMU: more shocks, less insulation? Patrick Honohan The World Bank

... lubricant, to move in a stabilizing manner when the Irish economy is hit by idiosyncratic shocks. Not only that: there is also the potential for exogenous movements in interest rates and in the effective exchange rate to operate as destabilizing forces. This concern is no longer an abstract one. Ind ...
Export Supply and Import Demand Models for
Export Supply and Import Demand Models for

The Impact of Real Exchange Rate Movements on
The Impact of Real Exchange Rate Movements on

... understanding of the impact of exchange rates to less than 30 percent of the economies of most developed countries. This is a major omission. Moreover, using US data Foote (1998) provides strong evidence that firm dynamics are very different in non-manufacturing sectors, underscoring the importance ...
! Export Supply and Import Demand Models for the Turkish Economy
! Export Supply and Import Demand Models for the Turkish Economy

... for determining the number of cointegrating vectors in addition to their estimates. An important feature we observe in Bahmani-Oskooee and Niroomand (1998) and BahmaniOskooee (1998) is the emphasis put on the match between the long-run characteristics of the Marshall-Lerner Condition and the cointeg ...
Does the Exchange Rate Regime Matter for Inflation?  Ilker Domaç
Does the Exchange Rate Regime Matter for Inflation? Ilker Domaç

... The Lucas critique states that when there is a policy switch the coefficients associated with policy variables should change. This is because the way in which expectations are formed—the relationship of expectations to past information—changes when the behavior of forecasted variables changes. The s ...
GEOSPACE TECHNOLOGIES CORP (Form: 8
GEOSPACE TECHNOLOGIES CORP (Form: 8

... including statements regarding potential future products and markets, our potential future revenues, future financial position, business strategy, future expectations and other plans and objectives for future operations, are forward-looking statements. We believe our forward-looking statements are r ...
1. O verview
1. O verview

... upcoming period. Downside risks to exports of services have recently grown amid continuing risks to external demand due to geopolitical developments and languishing global growth. Rising demand from the EU, on the other hand, continues to support our exports at a stronger pace (Chart 1.2.7). Overall ...
Fluctuations in the Yen/Dollar Exchange Rate, East Asian Business
Fluctuations in the Yen/Dollar Exchange Rate, East Asian Business

... countries have followed and still maintain de facto dollar pegs is, while widespread and often taken as a matter of fact, by no means incontrovertible. In Section 4, we look more closely at the relative impact of yen/dollar fluctuations and the global electronics cycle on the Asian countries’ export ...
Exchange Rate Volatility and Productivity Growth
Exchange Rate Volatility and Productivity Growth

... exchange rate regimes do aect rms' balance sheets. In particular, the adoption of a oating exchange rate regime leads to a higher degree of currency matching (and the opposite for the adoption of xed regimes), as Galiani et al. (2003) show for the case of Argentina's currency board and Kamil (20 ...
The Interactions of Strength of Governments and Alternative
The Interactions of Strength of Governments and Alternative

... They were enshrined in the Bretton Woods international monetary system to avoid the perceived disadvantages of both fixed and freely flexible exchange rate regimes. This compromise system worked well so long as international capital mobility was low, but as capital controls were relaxed and capital ...
Deflationary Shocks and Monetary Rules: An Open
Deflationary Shocks and Monetary Rules: An Open

Figure 1: Japan GDP growth
Figure 1: Japan GDP growth

... The External Environment for Developing Countries December 2008 The World Bank Development Economics Prospects Group ...
Official Dollarization and the Banking System in
Official Dollarization and the Banking System in

... ince Ecuadorian president Jamil Mahuad announced the adoption of the U.S. dollar as legal tender in January 2000, the discussion about the pros and cons of full dollarization has intensified. In 2001 El Salvador engaged in full dollarization to enhance its economic reform process. The two economies ...
International*Marketing* *
International*Marketing* *

Source
Source

... The world economic recovery slowly continues World divided between: ...
Exchange rate overshooting and the costs of floating April 2004 1 Michele Cavallo
Exchange rate overshooting and the costs of floating April 2004 1 Michele Cavallo

... debt. The stock sell-off further depresses domestic stock prices relative to the foreign currency debt making the margin constraint even more binding. The final effect of the move to a float is a large depreciation (with balance sheet effects) and a net loss of wealth because of the fire sale of ass ...
the eurozone and political economic institutions
the eurozone and political economic institutions

... The second factor is the strict control of fiscal policy. Public sector deficits in modern macroeconomics translate in medium-term equilibrium into a pari passu reduction in the external balance, hence in exports. In addition, wage restraint in the export sector depends on real wage restraint in th ...
Evaluating development efforts
Evaluating development efforts

... Inflation rates improved in the 1990s. Among middle-income countries the median annual inflation rate declined from a peak of 16 percent in 1990 to 6 percent in 2000. Among lowincome countries, inflation peaked in 1994-95 in the wake of the devaluation of the CFA franc, and then declined (Figure 4.3 ...
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Currency intervention

Currency intervention, also known as foreign exchange market intervention, or currency manipulation, occurs when a government buys or sells foreign currency to push the exchange rate of its own currency away from equilibrium value or to prevent the exchange rate from moving toward its equilibrium value.Generally, central banks intervene in foreign exchange markets in order to achieve a variety of overall economic objectives: controlling inflation, maintaining competitiveness, or maintaining financial stability. The precise objectives of policy and how they are reflected in currency manipulation depend on a number of factors, including the stage of a country’s development, the degree of financial market development and integration, and the country’s overall vulnerability to shocks.
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