Forecasting Method #1
... 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 reserve fund. They could use this as a form of direct intervention to increas ...
... 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 reserve fund. They could use this as a form of direct intervention to increas ...
History of Money
... explained its perennial appeal as presented by Bordo (1999). They are listed as follows: a) Low inflation, stable exchange rates, relatively rapid economic growth and less real instability than in the interwar period (Bordo 1981, 1993). It also was an era of rapidly expanding international trade in ...
... explained its perennial appeal as presented by Bordo (1999). They are listed as follows: a) Low inflation, stable exchange rates, relatively rapid economic growth and less real instability than in the interwar period (Bordo 1981, 1993). It also was an era of rapidly expanding international trade in ...
A survey of literature on the equilibrium real exchange rate an
... issues is important. In addition, the results for the euro exchange rate assume particular relevance since the euro has observed significant fluctuations over recent years and it is important to ascertain whether these movements were caused by changes in euro’s fundamental determinants or ...
... issues is important. In addition, the results for the euro exchange rate assume particular relevance since the euro has observed significant fluctuations over recent years and it is important to ascertain whether these movements were caused by changes in euro’s fundamental determinants or ...
DP2006/05 Should Monetary Policy Attempt to Reduce Exchange Rate Volatility in New Zealand?
... less activist monetary policy could, or should, attenuate exchange rate volatility. To date, the economic literature has suggested that using interest rate settings to attenuate exchange rate volatility would be too costly in terms of additional volatility in inflation. Gali and Monacelli (2005) sho ...
... less activist monetary policy could, or should, attenuate exchange rate volatility. To date, the economic literature has suggested that using interest rate settings to attenuate exchange rate volatility would be too costly in terms of additional volatility in inflation. Gali and Monacelli (2005) sho ...
5 The Short-Run IS-LM-FX Model of an Open Economy
... balance in the way we have assumed? The data show that the U.S. trade balance is correlated with the U.S. real effective exchange rate index. Because the trade balance also depends on changes in U.S. and rest of the world disposable income (and other factors), it may respond with a lag to changes in ...
... balance in the way we have assumed? The data show that the U.S. trade balance is correlated with the U.S. real effective exchange rate index. Because the trade balance also depends on changes in U.S. and rest of the world disposable income (and other factors), it may respond with a lag to changes in ...
On the impact of dollar movements on oil currencies
... Empirically, the relationship between terms of trade and the real exchange rate has been tested and proved for many energy and non-energy commodity exporting countries. Here, we will focus on the literature related to oil exporters. Overall, empirical studies on the dynamics of the real exchange rat ...
... Empirically, the relationship between terms of trade and the real exchange rate has been tested and proved for many energy and non-energy commodity exporting countries. Here, we will focus on the literature related to oil exporters. Overall, empirical studies on the dynamics of the real exchange rat ...
long-run effects of commodity prices on the real exchange rate
... examined. A few exceptions can be mentioned like the work of Fanelli and Albrieu (2013) in which they depict stylized facts observed during the commodity boom, highlight the positive shock that Argentina experienced in the last decade on its terms of trade, although they warn about how fragile the l ...
... examined. A few exceptions can be mentioned like the work of Fanelli and Albrieu (2013) in which they depict stylized facts observed during the commodity boom, highlight the positive shock that Argentina experienced in the last decade on its terms of trade, although they warn about how fragile the l ...
PDF
... III.1. Choice of Variables The choice of variables is directed to account for the key features in relationships between U.S. international trade and the U.S. domestic economy. Zt in equations (4) and (6) is composed of five variables: the U.S. trade weighted dollar values against foreign currencies, ...
... III.1. Choice of Variables The choice of variables is directed to account for the key features in relationships between U.S. international trade and the U.S. domestic economy. Zt in equations (4) and (6) is composed of five variables: the U.S. trade weighted dollar values against foreign currencies, ...
Modelling the rand and commodity prices: A Granger causality and
... when tested against data from major industrialized economies over the floating exchange rate period, canonical exchange rate models produce notoriously poor in-sample estimations, judged by both standard goodness- of-fit criteria and signs of estimated coefficients. Since Meese and Rogoff (1983) fir ...
... when tested against data from major industrialized economies over the floating exchange rate period, canonical exchange rate models produce notoriously poor in-sample estimations, judged by both standard goodness- of-fit criteria and signs of estimated coefficients. Since Meese and Rogoff (1983) fir ...
This PDF is a selection from a published volume from... Economic Research
... There are several previous studies that address determinants of debt maturity structure. For example, Rodrik and Velasco (1999) argue that international investors with informational disadvantages may choose to lend short-term to better monitor and discipline borrowers (see also Fukuda 2001 and Jeann ...
... There are several previous studies that address determinants of debt maturity structure. For example, Rodrik and Velasco (1999) argue that international investors with informational disadvantages may choose to lend short-term to better monitor and discipline borrowers (see also Fukuda 2001 and Jeann ...
Market Segmentation, Information Asymmetry
... slowly adjust to the new earnings information. However, the international investors in the Bshare market predict changes in EPS better and there is little or no abnormal announcementday effects. Thus, he claims that Chinese A-share markets are speculative while B-share markets are relatively more ef ...
... slowly adjust to the new earnings information. However, the international investors in the Bshare market predict changes in EPS better and there is little or no abnormal announcementday effects. Thus, he claims that Chinese A-share markets are speculative while B-share markets are relatively more ef ...
single central bank: macroeconomic costs and benefits for the
... greater discipline over fiscal policies than is the case with national central banks may enable it to become an “agency of restraint” (in the words of Paul Collier, a prominent economist). However, history tells us that such an agency of restraint requires other institutional buttresses and does not ...
... greater discipline over fiscal policies than is the case with national central banks may enable it to become an “agency of restraint” (in the words of Paul Collier, a prominent economist). However, history tells us that such an agency of restraint requires other institutional buttresses and does not ...
Pricing-to-Market - The Review of Economic Studies
... markup in the home market increases one-for-one with home currency depreciations and decreases one-for-one with home currency appreciations. This implies that real exchange rates at the plant-product level track nominal exchange rates, even conditional on price changes. This behavior is pervasive ac ...
... markup in the home market increases one-for-one with home currency depreciations and decreases one-for-one with home currency appreciations. This implies that real exchange rates at the plant-product level track nominal exchange rates, even conditional on price changes. This behavior is pervasive ac ...
Chapter 30
... restriction increases net exports and increases the demand for dollars in the market for foreign-currency exchange. As a result, the dollar appreciates in value, making domestic goods more expensive relative to foreign goods. This appreciation offsets the initial impact of the trade restrictions ...
... restriction increases net exports and increases the demand for dollars in the market for foreign-currency exchange. As a result, the dollar appreciates in value, making domestic goods more expensive relative to foreign goods. This appreciation offsets the initial impact of the trade restrictions ...
FOR APPROVAL - Robert Kollmann
... Abstract Standard macro models fail to explain why real exchange rates are volatile and disconnected from macro aggregates. Recent research argues that models with persistent growth rate shocks and recursive preferences can solve that puzzle. I show that this result is highly sensitive to the struct ...
... Abstract Standard macro models fail to explain why real exchange rates are volatile and disconnected from macro aggregates. Recent research argues that models with persistent growth rate shocks and recursive preferences can solve that puzzle. I show that this result is highly sensitive to the struct ...
New Zealand’s short- and medium-term real implications
... This section looks at medium term volatility in real exchange rates. The measures we consider indicate that New Zealand has had both longer and larger upswings and downswings than most other countries in our sample. Appendix A shows the identified real exchange rate turning points for each country f ...
... This section looks at medium term volatility in real exchange rates. The measures we consider indicate that New Zealand has had both longer and larger upswings and downswings than most other countries in our sample. Appendix A shows the identified real exchange rate turning points for each country f ...
The US Dollar and the Euro as International
... and econometric evidence point in this direction. The dollar being the reigning champion, it accounts for a larger share of global foreign exchange reserves than suggested by a simple comparison of US and EU GDP’s, and it should do so for some time to come. A more institutionally-oriented analysis r ...
... and econometric evidence point in this direction. The dollar being the reigning champion, it accounts for a larger share of global foreign exchange reserves than suggested by a simple comparison of US and EU GDP’s, and it should do so for some time to come. A more institutionally-oriented analysis r ...
The Euro and Stock Markets in Hungary, Poland, and UK
... prices. The interaction between the two variables can also arise through the implications on price competitiveness or input costs. These suggest that exchange rates may play a significant role in the movement of stock prices. There is a number of empirical works examining the relationship for variou ...
... prices. The interaction between the two variables can also arise through the implications on price competitiveness or input costs. These suggest that exchange rates may play a significant role in the movement of stock prices. There is a number of empirical works examining the relationship for variou ...
Chapter 18
... while not desirable, at least did not depress domestic investment, since firms could borrow from abroad. § A country, like a person, can go into debt for good reasons or bad ones. A trade deficit is not necessarily a problem, but might be a symptom of a problem. © 2015 Cengage Learning. All Rights ...
... while not desirable, at least did not depress domestic investment, since firms could borrow from abroad. § A country, like a person, can go into debt for good reasons or bad ones. A trade deficit is not necessarily a problem, but might be a symptom of a problem. © 2015 Cengage Learning. All Rights ...
The Effects of Budget Deficit Reduction on the Exchange Rate
... authority, many analysts believe that a projected string of budget deficits eventually leads to higher inflation. Therefore, if a country reduces its budget deficit, long-term inflation expectations could decline. As Chairman Greenspan (1995, p. 141) put it, “Many of us who are central bankers expec ...
... authority, many analysts believe that a projected string of budget deficits eventually leads to higher inflation. Therefore, if a country reduces its budget deficit, long-term inflation expectations could decline. As Chairman Greenspan (1995, p. 141) put it, “Many of us who are central bankers expec ...
Does Population Transition Influence Real Exchange Rate? Empirical Evidence from Australia:
... Given the demographic transition in Australia, it is important to examine the effect of its ageing population on the real exchange rate. Australia’s real exchange rate has historically been influenced by its terms of trade shocks. This is because in a major commodity exporting small open economy li ...
... Given the demographic transition in Australia, it is important to examine the effect of its ageing population on the real exchange rate. Australia’s real exchange rate has historically been influenced by its terms of trade shocks. This is because in a major commodity exporting small open economy li ...
Sebastian NEER WORKING PAPER SERIES OF CAPITAL CONTROLS AND ROLE
... members of the EMS. It follows, therefore, that for such countries, the costs and benefits of Project 1992 may be addressed in models that do not explicitly incorporate the exchange rate bands that govern monetary policy within the EMS. The present paper employs a real, optimizing model to consider ...
... members of the EMS. It follows, therefore, that for such countries, the costs and benefits of Project 1992 may be addressed in models that do not explicitly incorporate the exchange rate bands that govern monetary policy within the EMS. The present paper employs a real, optimizing model to consider ...
Exchange rate pass-through in central and eastern European
... The issue of ERPT to prices has emerged as a strand of the exchange rate literature over the past thirty years or so, notably since the breakdown of the Bretton Woods system. Exchange rate pass-through reflects the extent to which exchange rate changes are passed on to the local currency prices of t ...
... The issue of ERPT to prices has emerged as a strand of the exchange rate literature over the past thirty years or so, notably since the breakdown of the Bretton Woods system. Exchange rate pass-through reflects the extent to which exchange rate changes are passed on to the local currency prices of t ...
inflation, exchange rates, and stabilization
... country on a fixed dollar exchange rate. Even though the inflation rate was still 30 percent, the peso was pegged at 39 to the dollar forever after, or so the government announced. Exchange-rate pegging was thought to help bring inflation under control through at least two channels. First, internati ...
... country on a fixed dollar exchange rate. Even though the inflation rate was still 30 percent, the peso was pegged at 39 to the dollar forever after, or so the government announced. Exchange-rate pegging was thought to help bring inflation under control through at least two channels. First, internati ...