![NBER WORKING PAPER SERIES FLEXIBLE EXCHANGE RATES AS SHOCK ABSORBERS Sebastian Edwards](http://s1.studyres.com/store/data/008233110_1-c18cbcfc7c80c62332139e8e202c936c-300x300.png)
NBER WORKING PAPER SERIES FLEXIBLE EXCHANGE RATES AS SHOCK ABSORBERS Sebastian Edwards
... generate (large) increases in the value of the debt expressed in domestic currency. This, in turn, may trigger bankruptcies, lead the public sector to insolvency, and result in a reduction in the rate of growth (Calvo 2000). As the preceding discussion suggests, determining whether flexible exchange ...
... generate (large) increases in the value of the debt expressed in domestic currency. This, in turn, may trigger bankruptcies, lead the public sector to insolvency, and result in a reduction in the rate of growth (Calvo 2000). As the preceding discussion suggests, determining whether flexible exchange ...
Taylor Rules and Exchange Rate Predictability in Emerging
... the literature of the 1980s and 1990s, claimed: ‘the empirical results tended to be fragile in the sense that they were hard to replicate in different samples or countries.’ Cheung, Chinn, and Pascual (2005) tested predictability for the US dollar-based exchange rates of the Canadian dollar, British ...
... the literature of the 1980s and 1990s, claimed: ‘the empirical results tended to be fragile in the sense that they were hard to replicate in different samples or countries.’ Cheung, Chinn, and Pascual (2005) tested predictability for the US dollar-based exchange rates of the Canadian dollar, British ...
Republic of Croatia: 2014 Article IV Consultation--Staff Report
... Restoring Fiscal Sustainability. High fiscal deficits, rapidly increasing public debt and elevated risk spreads demand sustained fiscal consolidation. Adjustment should be stretched over several years, with an emphasis on low multiplier measures—including on the revenue side–during the early phase o ...
... Restoring Fiscal Sustainability. High fiscal deficits, rapidly increasing public debt and elevated risk spreads demand sustained fiscal consolidation. Adjustment should be stretched over several years, with an emphasis on low multiplier measures—including on the revenue side–during the early phase o ...
Forecasting Method #1
... its revival as the global recession ends. If they do in fact see this as pivotal to their comeback, they will need to keep the exchange rate low or risk an adverse effect on their exporting capabilities. -According to the Reserve Bank of Australia they currently carry 6.286 billion AUD in their rese ...
... its revival as the global recession ends. If they do in fact see this as pivotal to their comeback, they will need to keep the exchange rate low or risk an adverse effect on their exporting capabilities. -According to the Reserve Bank of Australia they currently carry 6.286 billion AUD in their rese ...
Why Was the Plaza Accord Unique?
... into policymakers’ inflation-targeting rules, according to most variations of the models mentioned above. In practice the impact of nominal exchange rates on inflation rises to the fore. Truman (2014 and chapter 9 of this volume) documents that concern outside the United States about the impact of d ...
... into policymakers’ inflation-targeting rules, according to most variations of the models mentioned above. In practice the impact of nominal exchange rates on inflation rises to the fore. Truman (2014 and chapter 9 of this volume) documents that concern outside the United States about the impact of d ...
Identification of US Monetary Policy Shocks
... failure to distinguish “the most widely discussed and visible” US monetary policy regime leads to the premature conclusion that Dornbusch’s overshooting hypothesis fails to hold and that monetary shocks have little impacts on exchange rates. Second, provided that the processes that generate all othe ...
... failure to distinguish “the most widely discussed and visible” US monetary policy regime leads to the premature conclusion that Dornbusch’s overshooting hypothesis fails to hold and that monetary shocks have little impacts on exchange rates. Second, provided that the processes that generate all othe ...
NBER WORKING PAPER SERIES
... external shocks? Was the apparent stability due to the absence of shocks? These questions are addressed in the historical narrative section of the paper and as well as by simulation results derived from the estimated DSGE model. The unique Canadian experiment with a flexible exchange rate sparked e ...
... external shocks? Was the apparent stability due to the absence of shocks? These questions are addressed in the historical narrative section of the paper and as well as by simulation results derived from the estimated DSGE model. The unique Canadian experiment with a flexible exchange rate sparked e ...
Studies on the Macroeconomics of Monetary Union - Jultika
... regimes.1 The gold standard was blamed for the worldwide spread of depression after 1929, and a system of flexible exchange rates was proposed as an alternative. For example Friedman (1953) argued that a country could be better off by reserving domestic monetary policy for price or employment stabil ...
... regimes.1 The gold standard was blamed for the worldwide spread of depression after 1929, and a system of flexible exchange rates was proposed as an alternative. For example Friedman (1953) argued that a country could be better off by reserving domestic monetary policy for price or employment stabil ...
Liquid assets, liquidity constraints and global imbalances
... Macroeconomic Analysis and Forecasting Directorate Banque de France ...
... Macroeconomic Analysis and Forecasting Directorate Banque de France ...
Government Spending Multipliers and the Zero Lower
... followed in 2007, the interest rate in the United States and in European countries, reached their lowest levels. Many signicant budget plans emerged; the American Recovery and Reinvestment Act (ARRA) in the United States (831 billion from 2009 to 2019) and the European Economic Recovery Plan (EERP) ...
... followed in 2007, the interest rate in the United States and in European countries, reached their lowest levels. Many signicant budget plans emerged; the American Recovery and Reinvestment Act (ARRA) in the United States (831 billion from 2009 to 2019) and the European Economic Recovery Plan (EERP) ...
Download Dissertation
... the real exchange rate and analyze the returns of these portfolios as they relate to traditional asset pricing factors and especially how they correlate with carry trade portfolios. Deviations from long term averages of real exchange rates are found to be predictors of crash risk. I also show that t ...
... the real exchange rate and analyze the returns of these portfolios as they relate to traditional asset pricing factors and especially how they correlate with carry trade portfolios. Deviations from long term averages of real exchange rates are found to be predictors of crash risk. I also show that t ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... with global risk factors. In addition, India has fared well in creating the institutional mechanisms of a modern, liquid equity market. Through these factors, portfolio flows have predominated. India’s share in global portfolio flows is higher than India’s share in global FDI flows, and net portfoli ...
... with global risk factors. In addition, India has fared well in creating the institutional mechanisms of a modern, liquid equity market. Through these factors, portfolio flows have predominated. India’s share in global portfolio flows is higher than India’s share in global FDI flows, and net portfoli ...
Some Lags in Monetary Policy
... Much cf the variability in policy could be eliminated by allowing the banks to make adjustments in their reserve positions through the Federal funds market when there are temporary changes in float or in currency, deposit redistribution between different types of banks, etc* Let me make clear that I ...
... Much cf the variability in policy could be eliminated by allowing the banks to make adjustments in their reserve positions through the Federal funds market when there are temporary changes in float or in currency, deposit redistribution between different types of banks, etc* Let me make clear that I ...
What G20 Leaders Must Do to Stabilise Our Economy and
... None of these proposals will come to fruition on November 15th. But it is essential to start discussing them now. Finally, doing no harm means not throwing the baby out with the bathwater. It means not clamping down so hard on financial institutions and transactions that they become incapable of pro ...
... None of these proposals will come to fruition on November 15th. But it is essential to start discussing them now. Finally, doing no harm means not throwing the baby out with the bathwater. It means not clamping down so hard on financial institutions and transactions that they become incapable of pro ...
An electricity-backed currency proposal
... A problem with gold and commodity-based currencies is the negative real yields over time due to the associated storage and insurance costs. Real electricity prices are moderately stable over the long run with demand growth tracking GDP closely in most countries over the decades. Historically, many g ...
... A problem with gold and commodity-based currencies is the negative real yields over time due to the associated storage and insurance costs. Real electricity prices are moderately stable over the long run with demand growth tracking GDP closely in most countries over the decades. Historically, many g ...
Asset Prices, Financial Conditions, and the
... there are also real determinants of the real exchange rates, which could give rise to long-run deterministic trends in real exchange rates. For example, the Balassa-Samuelson effect implies that if a country has higher long-run productivity growth in its tradable goods sector than its trading partn ...
... there are also real determinants of the real exchange rates, which could give rise to long-run deterministic trends in real exchange rates. For example, the Balassa-Samuelson effect implies that if a country has higher long-run productivity growth in its tradable goods sector than its trading partn ...
NBER WORKING PAPER SERIES IN A SMALL OPEN ECONOMY
... By contrast, most of the existing literature abstracts from investment, in which case the current account surplus is identical to savings. To the extent that capital accumulation is considered,it is introduced in restrictive ways. Engel and Kletzer (1987), for instance, do have capital, but in order ...
... By contrast, most of the existing literature abstracts from investment, in which case the current account surplus is identical to savings. To the extent that capital accumulation is considered,it is introduced in restrictive ways. Engel and Kletzer (1987), for instance, do have capital, but in order ...
The Illusive Quest: Do International Capital Controls Contribute to Currency Stability?
... not effectively insulated economies from currency crises at any time during our sample period. Maintaining real GDP growth and limiting real overvaluation are critical factors preventing currency crises, not capital controls. However, the presence of capital controls greatly increases the sensitivit ...
... not effectively insulated economies from currency crises at any time during our sample period. Maintaining real GDP growth and limiting real overvaluation are critical factors preventing currency crises, not capital controls. However, the presence of capital controls greatly increases the sensitivit ...
How do UK-based foreign exchange dealers think their market
... Many of the traders surveyed claim to use at least two techniques and so the number of chosen techniques is much larger than the total number of responses to the question (110). Fundamental and technical trading-based strategies are both followed by approximately one-third of dealers, with even more ...
... Many of the traders surveyed claim to use at least two techniques and so the number of chosen techniques is much larger than the total number of responses to the question (110). Fundamental and technical trading-based strategies are both followed by approximately one-third of dealers, with even more ...
Foreign-exchange reserves
Foreign-exchange reserves (also called forex reserves or FX reserves) are assets held by a central bank or other monetary authority, usually in various reserve currencies, mostly the United States dollar, and to a lesser extent the euro, the pound sterling, and the Japanese yen, and used to back its liabilities—e.g., the local currency issued, and the various bank reserves deposited with the central bank by the government or by financial institutions.