Exchange rate overshooting and the costs of floating April 2004 1 Michele Cavallo
... This paper is also related to a recent analytical literature on balance sheet effects and output contractions.5 This literature has stressed the role of “balance sheet effects” in explaining the contractionary effects of depreciations: when liabilities are in foreign currency while assets are in lo ...
... This paper is also related to a recent analytical literature on balance sheet effects and output contractions.5 This literature has stressed the role of “balance sheet effects” in explaining the contractionary effects of depreciations: when liabilities are in foreign currency while assets are in lo ...
MONETARY POLICY IN A DSGE MODEL WITH “CHINESE CHARACTERISTICS”
... As China’s importance in global trade has increased, so has scrutiny about its capital account and exchange rate policies. Estimates of the severity of undervaluation of the Chinese renminbi relative to the dollar have been as high as 20 to 40 percent [Goldstein and Lardy (2006)]. While the renminbi ...
... As China’s importance in global trade has increased, so has scrutiny about its capital account and exchange rate policies. Estimates of the severity of undervaluation of the Chinese renminbi relative to the dollar have been as high as 20 to 40 percent [Goldstein and Lardy (2006)]. While the renminbi ...
Contemporary exchange rate regimes: floating, fixed and hybrid
... The other regimes that Galí and Monacelli consider are a pegged exchange rate; and two Taylor (1993)-type rules that respond, respectively, to domestic inflation and CPI inflation. Pegging the exchange rate allows no variability in the exchange rate, but of all policy choices gives rise to the great ...
... The other regimes that Galí and Monacelli consider are a pegged exchange rate; and two Taylor (1993)-type rules that respond, respectively, to domestic inflation and CPI inflation. Pegging the exchange rate allows no variability in the exchange rate, but of all policy choices gives rise to the great ...
NBER WORKING PAPER SERIES A THEORY AND EVIDENCE FROM EAST ASIA
... from balanced by surpluses of the other industrialized countries (see Figure 1). The first strand of studies proposes that the recent deterioration in the U.S. current account primarily reflects a decline of the U.S. domestic saving and an increase in the U.S. demand for foreign goods. The second st ...
... from balanced by surpluses of the other industrialized countries (see Figure 1). The first strand of studies proposes that the recent deterioration in the U.S. current account primarily reflects a decline of the U.S. domestic saving and an increase in the U.S. demand for foreign goods. The second st ...
Tesis de Maestría en Economía Internacional
... which the government applies its aliquots outperform the prices of the goods and services (including factorials) that the government acquires, the government will be making a gain. This gain is similar to an intersectorial transfer of funds between society as a whole and the public sector, caused by ...
... which the government applies its aliquots outperform the prices of the goods and services (including factorials) that the government acquires, the government will be making a gain. This gain is similar to an intersectorial transfer of funds between society as a whole and the public sector, caused by ...
Understanding Changes in Exchange Rate PassThrough
... pass-through: the degree of openness of the economy, the fraction of flexible-price firms in the economy, the credibility of the central bank, and the degree of exchange rate passthrough at the level of the firm. The third section discusses the empirical approach. My sample consists of 14 OECD count ...
... pass-through: the degree of openness of the economy, the fraction of flexible-price firms in the economy, the credibility of the central bank, and the degree of exchange rate passthrough at the level of the firm. The third section discusses the empirical approach. My sample consists of 14 OECD count ...
The Efficacy of Foreign Exchange Market Intervention in Malawi
... both external and internal factors, they were difficult to achieve in the 1980s. The late 1990s and early 2000s brought unique challenges emanating from the opening up of the economy and from globalization. A common feature of developing countries like Malawi is that their international trade is in ...
... both external and internal factors, they were difficult to achieve in the 1980s. The late 1990s and early 2000s brought unique challenges emanating from the opening up of the economy and from globalization. A common feature of developing countries like Malawi is that their international trade is in ...
An estimation of the J-Curve effect between South Africa and the
... pound as the accepted global currency (Judis, 2008). ...
... pound as the accepted global currency (Judis, 2008). ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... the Bretton Woods ground rules, under which markets could never be certain when payments restrictions would be imposed or exchange parities altered. Even limited speculative flows, operating through leads, lags, and similar avenues, could place governments under unwelcome pressure. The confidencebui ...
... the Bretton Woods ground rules, under which markets could never be certain when payments restrictions would be imposed or exchange parities altered. Even limited speculative flows, operating through leads, lags, and similar avenues, could place governments under unwelcome pressure. The confidencebui ...
Does exchange rate depreciation have contractionary effects on firm
... This impact that exchange rates have on the real economy through their effect on firms’ financial conditions is referred to as the “risk-taking channel of currency appreciation”. Here the US Dollar plays a pivotal role: a currency appreciation vis-à-vis the US Dollar is generally linked with permiss ...
... This impact that exchange rates have on the real economy through their effect on firms’ financial conditions is referred to as the “risk-taking channel of currency appreciation”. Here the US Dollar plays a pivotal role: a currency appreciation vis-à-vis the US Dollar is generally linked with permiss ...
IOSR Journal of Business and Management (IOSR-JBM)
... Theoretically, the multiplier-accelerator model describes that with the help of income and interest rate, changes in investment or capital stock can be determined. There are also many factors which are used to determine the investment; these factors include government policy, risk and profitability ...
... Theoretically, the multiplier-accelerator model describes that with the help of income and interest rate, changes in investment or capital stock can be determined. There are also many factors which are used to determine the investment; these factors include government policy, risk and profitability ...
Criteria To Be Considered In Assessing A Country`s
... implications for the amount of domestic and foreign debt restructuring and/or debt reduction that the country will have to undertake in the near future to restore medium term debt sustainability. Thus, while discussing these alternative currency regimes, I will also consider the implications of thes ...
... implications for the amount of domestic and foreign debt restructuring and/or debt reduction that the country will have to undertake in the near future to restore medium term debt sustainability. Thus, while discussing these alternative currency regimes, I will also consider the implications of thes ...
Economic Policy in Dollarized Economies with Special Review of
... Any currency that does not have gold coverage entails a big or a small risk. In the situation when the price of gold in the world markets fluctuates, returning to the gold standard would not itself guarantee the stability of a country’s national currency. With the increase in the number of independe ...
... Any currency that does not have gold coverage entails a big or a small risk. In the situation when the price of gold in the world markets fluctuates, returning to the gold standard would not itself guarantee the stability of a country’s national currency. With the increase in the number of independe ...
Study of the Behavior of the Indonesian Rupiah/US Dollar
... Indonesia implemented foreign exchange restrictions during 1949-1965 to control limited foreign exchange reserves. In response to rampant inflation in the early 1960s, it introduced a new rupiah worth of 1,000 units of the old rupiah in 1965 and pursued a stabilization program during 19661970 to enh ...
... Indonesia implemented foreign exchange restrictions during 1949-1965 to control limited foreign exchange reserves. In response to rampant inflation in the early 1960s, it introduced a new rupiah worth of 1,000 units of the old rupiah in 1965 and pursued a stabilization program during 19661970 to enh ...
tipec 04/1 - Trent University
... business lobby group that represents the most internationally-oriented firms – the Canadian Council of Chief Executives (previously the Business Council on National Issues) – has continued to defend the floating exchange rate regime during the NAMU debate. So too have the Canadian banks. NAMU has al ...
... business lobby group that represents the most internationally-oriented firms – the Canadian Council of Chief Executives (previously the Business Council on National Issues) – has continued to defend the floating exchange rate regime during the NAMU debate. So too have the Canadian banks. NAMU has al ...
(PDF)
... currency depreciation needed to achieve a given reduction in the quantity of imports. A related question concerns the effect of exchange rate changes on overall domestic inflation. Some have argued that low import prices were the main reason behind the low inflation rates that characterized the U.S. ...
... currency depreciation needed to achieve a given reduction in the quantity of imports. A related question concerns the effect of exchange rate changes on overall domestic inflation. Some have argued that low import prices were the main reason behind the low inflation rates that characterized the U.S. ...
Exchange Rate Volatility on Investment and Growth in Nigeria, an
... effect of exchange rate volatility. Few of the studies have conducted both exchange rate volatility on growth and investment in Nigeria. Manalo, Perera and Rees (2014) examine the effects of exchange rate movements on the Australian economy using the structural vector auto-regression model using sea ...
... effect of exchange rate volatility. Few of the studies have conducted both exchange rate volatility on growth and investment in Nigeria. Manalo, Perera and Rees (2014) examine the effects of exchange rate movements on the Australian economy using the structural vector auto-regression model using sea ...
Exchange rate and trade: an analysis of the relationship for Ukraine
... (net export) into ISLM model and allows analyzing the impact of the exchange rate on the economy. An another popular model in the field is Marshall-Lerner condition that represents so-called "elasticity" approach as it analyzes export and import elasticities and compares them. The condition suggest ...
... (net export) into ISLM model and allows analyzing the impact of the exchange rate on the economy. An another popular model in the field is Marshall-Lerner condition that represents so-called "elasticity" approach as it analyzes export and import elasticities and compares them. The condition suggest ...
Presentation
... Virtually no capital expenditure No additional operations or engineering resources With benefits of BT interconnect rates ...
... Virtually no capital expenditure No additional operations or engineering resources With benefits of BT interconnect rates ...
Entry Dynamics and the Decline in Exchange-Rate Pass-Through
... It is well known that the degree of exchange-rate pass-through (pass-through herein) to import prices is low. The evidence surveyed in Goldberg and Knetter (1997) suggest that an average pass-through estimate for the 1980s would be roughly 50 percent for the United States, implying that, following a ...
... It is well known that the degree of exchange-rate pass-through (pass-through herein) to import prices is low. The evidence surveyed in Goldberg and Knetter (1997) suggest that an average pass-through estimate for the 1980s would be roughly 50 percent for the United States, implying that, following a ...
Long-Horizon Forecasts of Asset Prices when the Discount Factor is
... fundamentals are I(1). In this case, the h-period change of the exchange rate is the sum of h white noises, and therefore a white noise as well. The more interesting case is when Engel and West’s (2005) assumptions that fundamentals are I(1) do not hold, so that some economic fundamentals are I(0) r ...
... fundamentals are I(1). In this case, the h-period change of the exchange rate is the sum of h white noises, and therefore a white noise as well. The more interesting case is when Engel and West’s (2005) assumptions that fundamentals are I(1) do not hold, so that some economic fundamentals are I(0) r ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... this caused the United States to generate a large and persistent surplus in its balance of payments on current account. The Fund rejected this view. The dollar shortage, it said, was actually a shortage of real resources for reconstruction that would end when Europe’s capacity to produce was restore ...
... this caused the United States to generate a large and persistent surplus in its balance of payments on current account. The Fund rejected this view. The dollar shortage, it said, was actually a shortage of real resources for reconstruction that would end when Europe’s capacity to produce was restore ...
devaluation and its impact on ethiopian economy
... and auction exchange rate regime. (Aron and Elbadawi, 1994 ) ...
... and auction exchange rate regime. (Aron and Elbadawi, 1994 ) ...