No.286 / March 2009 Fiscal Shocks and The Real Exchange Rate
... The literature dealing with fiscal shocks has considered a range of different measures of government spending.1 Most papers have focused on government consumption, whether in the aggregate (Blanchard and Perotti 2002, Monacelli and Perotti 2006) or subcomponents (Monacelli and Perotti 2008 focus on ...
... The literature dealing with fiscal shocks has considered a range of different measures of government spending.1 Most papers have focused on government consumption, whether in the aggregate (Blanchard and Perotti 2002, Monacelli and Perotti 2006) or subcomponents (Monacelli and Perotti 2008 focus on ...
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... a story is potentially consistent with the Chaboud and Wright (2003) results as they focus on observations where exchange risk is minimal (but interest is still paid) and the risk premium may vanish. It is therefore worthwhile to re-examine UIRP and the EHTS simultaneously at long and short horizons ...
... a story is potentially consistent with the Chaboud and Wright (2003) results as they focus on observations where exchange risk is minimal (but interest is still paid) and the risk premium may vanish. It is therefore worthwhile to re-examine UIRP and the EHTS simultaneously at long and short horizons ...
Currency Crises, Capital Account Liberalization
... Our analysis suggests that, even after controlling for sample selection bias (and obtaining unbiased estimates), a liberalized capital account is associated with a lower likelihood of currency crises. That is, when two countries have the same likelihood of allowing free movement of capital (based on ...
... Our analysis suggests that, even after controlling for sample selection bias (and obtaining unbiased estimates), a liberalized capital account is associated with a lower likelihood of currency crises. That is, when two countries have the same likelihood of allowing free movement of capital (based on ...
Implementation Gold Dinar: Is It Feasible?
... after the devaluation of silver and widespread inclusion of the currency. This situation occurred due to the inclusion of excess silver by European traders who bought gold for export to their country. At the same time, there was also the dumping of worthless copper currency until it was further depr ...
... after the devaluation of silver and widespread inclusion of the currency. This situation occurred due to the inclusion of excess silver by European traders who bought gold for export to their country. At the same time, there was also the dumping of worthless copper currency until it was further depr ...
Currency internationalisation and exchange rate dynamics in
... The emphasis on expectations in short-term financial markets for exchange rate determination in Brazil is particularly warranted given the recent internationalisation process of its currency. The dissertation consequently shows the different manifestations of this process, the elements of Brazil‘s f ...
... The emphasis on expectations in short-term financial markets for exchange rate determination in Brazil is particularly warranted given the recent internationalisation process of its currency. The dissertation consequently shows the different manifestations of this process, the elements of Brazil‘s f ...
Why and when to introduce a single currency in ECOWAS
... Naira depreciated slightly and yields on State bonds were stretched (see Graph 1). Ghana’s currency also depreciated. ...
... Naira depreciated slightly and yields on State bonds were stretched (see Graph 1). Ghana’s currency also depreciated. ...
External Adjustment in Oil Exporters
... exchange rate changes and in turn the responses of import or export volumes to relative prices; they argue that exchange rate changes could have a big impact on real net exports. Studies that disaggregate across products or trading partners find higher exchange rate effects (Auer and Sauré, 2012; Im ...
... exchange rate changes and in turn the responses of import or export volumes to relative prices; they argue that exchange rate changes could have a big impact on real net exports. Studies that disaggregate across products or trading partners find higher exchange rate effects (Auer and Sauré, 2012; Im ...
Effects of monetary policy on the $ / £ exchange rate. Is there a
... and Romer (2004) monetary policy index. For the period from 1974M1 to 1990M5, Eichenbaum and Evans (1995) found the considered exchange rates to appreciate for several months after an expansionary US monetary policy shock until reaching a peak from which they then start to decline in value. The dete ...
... and Romer (2004) monetary policy index. For the period from 1974M1 to 1990M5, Eichenbaum and Evans (1995) found the considered exchange rates to appreciate for several months after an expansionary US monetary policy shock until reaching a peak from which they then start to decline in value. The dete ...
Support for Resistance: Technical Analysis and Intraday
... predict trend interruptions is consistent with other studies of the usefulness of technical trading rules when applied to currencies. Filter rules were found to be profitable as early as 1984 (Dooley and Shafer 1984), less than a decade into the floating rate period, and this finding has been confir ...
... predict trend interruptions is consistent with other studies of the usefulness of technical trading rules when applied to currencies. Filter rules were found to be profitable as early as 1984 (Dooley and Shafer 1984), less than a decade into the floating rate period, and this finding has been confir ...
The Effects of Exchange Rate Regimes on Real Exchange
... As a general balance of recent literature, it is possible to conclude that there is not a clear consensus about the connection between exchange rate regimes and real exchange rate (RER) volatility. This question is especially important because the RER volatility it is supposed to have a strong effe ...
... As a general balance of recent literature, it is possible to conclude that there is not a clear consensus about the connection between exchange rate regimes and real exchange rate (RER) volatility. This question is especially important because the RER volatility it is supposed to have a strong effe ...
Market making in international capital markets
... In sum, studies find substantial evidence that market makers serve as liquidity providers in developed markets. Our study (Figures 1 and 2) shows that a major problem in emerging markets is low liquidity and low daily turnover. Thus, by investigating the implementation of market making in emerging m ...
... In sum, studies find substantial evidence that market makers serve as liquidity providers in developed markets. Our study (Figures 1 and 2) shows that a major problem in emerging markets is low liquidity and low daily turnover. Thus, by investigating the implementation of market making in emerging m ...
Yip, Paul SL, (2005). The Exchange Rate Systems in Hong
... channeled to the US, helping to finance its huge current account deficit and exacerbating “global imbalances”. This calls for the strengthening of the financial system of the regional countries that would facilitate the unwinding of Asia’s savings-investment imbalance. The limited development of reg ...
... channeled to the US, helping to finance its huge current account deficit and exacerbating “global imbalances”. This calls for the strengthening of the financial system of the regional countries that would facilitate the unwinding of Asia’s savings-investment imbalance. The limited development of reg ...
A New Look at Pass-through
... do so in the model, PPP will hold. Alternatively, if m* changes, p* moves by the same amount in the same direction, but s moves in the opposite direction (i.e. ∆m* = - ∆s). In this case there is no change in the domestic prices of foreign goods as foreign costs and the change in exchange rates perfe ...
... do so in the model, PPP will hold. Alternatively, if m* changes, p* moves by the same amount in the same direction, but s moves in the opposite direction (i.e. ∆m* = - ∆s). In this case there is no change in the domestic prices of foreign goods as foreign costs and the change in exchange rates perfe ...
Cost Push Shocks and Monetary Policies in Open
... particularly important additional concern is the relative price between home and foreign goods. Nevertheless, open economy contributions to the recent literature suggest that a welfare maximising monetary policy should focus on stabilising internal relative prices. This is achieved by strict targeti ...
... particularly important additional concern is the relative price between home and foreign goods. Nevertheless, open economy contributions to the recent literature suggest that a welfare maximising monetary policy should focus on stabilising internal relative prices. This is achieved by strict targeti ...
Nontradable Goods and the Real Exchange Rate
... compare two versions of this model: in the first one, the two sectors (tradable and nontradable) produce final consumption goods. In the second one, we introduce a nontradable intermediate input that is incorporated in the production of the final tradable good. In this case, we aim at understanding ...
... compare two versions of this model: in the first one, the two sectors (tradable and nontradable) produce final consumption goods. In the second one, we introduce a nontradable intermediate input that is incorporated in the production of the final tradable good. In this case, we aim at understanding ...
Simple monetary policy rules and exchange rate uncertainty Kai Leitemo Ulf S¨
... In open economies, the exchange rate is an important element of the transmission of monetary policy. As stressed by Svensson (2000), the exchange rate allows for several channels in addition to the standard aggregate demand and expectations channels in closed economies: (i ) the real exchange rate a ...
... In open economies, the exchange rate is an important element of the transmission of monetary policy. As stressed by Svensson (2000), the exchange rate allows for several channels in addition to the standard aggregate demand and expectations channels in closed economies: (i ) the real exchange rate a ...
Concepts of equilibrium exchange rates
... The term equilibrium exchange rate has been used to mean many different things by many different people. For some, the concept is clearly a long-run one. For others, even short-run movements in exchange rates may represent equilibrium behaviour. So pinning down exactly what people mean when they use ...
... The term equilibrium exchange rate has been used to mean many different things by many different people. For some, the concept is clearly a long-run one. For others, even short-run movements in exchange rates may represent equilibrium behaviour. So pinning down exactly what people mean when they use ...
Monetary Policy Rules for Managing Aid Surges in Africa
... References................................................................................................................................39 ...
... References................................................................................................................................39 ...
NBER WORKING PAPER SERIES TIME OF TROUBLES: Maurice Obstfeld
... 1991-92 market peak. In percentage terms, however, the bubble in stock prices was much more extreme. The Nikkei 225 average rose from about 13,000 at the start of 1986 to about 39,000 at the end of 1989, when the bubble peaked. With the benefit hindsight, the steep price increases look wildly unsus ...
... 1991-92 market peak. In percentage terms, however, the bubble in stock prices was much more extreme. The Nikkei 225 average rose from about 13,000 at the start of 1986 to about 39,000 at the end of 1989, when the bubble peaked. With the benefit hindsight, the steep price increases look wildly unsus ...
Time of Troubles: The Yen and Japan`s Economy, 1985-2008
... 1991-92 market peak. In percentage terms, however, the bubble in stock prices was much more extreme. The Nikkei 225 average rose from about 13,000 at the start of 1986 to about 39,000 at the end of 1989, when the bubble peaked. With the benefit hindsight, the steep price increases look wildly unsus ...
... 1991-92 market peak. In percentage terms, however, the bubble in stock prices was much more extreme. The Nikkei 225 average rose from about 13,000 at the start of 1986 to about 39,000 at the end of 1989, when the bubble peaked. With the benefit hindsight, the steep price increases look wildly unsus ...
Time of Troubles: The Yen and Japan`s Economy, 1985
... 1991-92 market peak. In percentage terms, however, the bubble in stock prices was much more extreme. The Nikkei 225 average rose from about 13,000 at the start of 1986 to about 39,000 at the end of 1989, when the bubble peaked. With the benefit hindsight, the steep price increases look wildly unsus ...
... 1991-92 market peak. In percentage terms, however, the bubble in stock prices was much more extreme. The Nikkei 225 average rose from about 13,000 at the start of 1986 to about 39,000 at the end of 1989, when the bubble peaked. With the benefit hindsight, the steep price increases look wildly unsus ...
Time of Troubles: The Yen and Japan`s Economy, 1985
... of shares and real estate. This “bubble economy” was followed by a collapse in asset values, a reduced pace of real economic growth, banking problems, and deflation. Nearly two decades after the demise of the bubble economy, the prognosis for Japanese growth remains uncertain amid a turbulent global ...
... of shares and real estate. This “bubble economy” was followed by a collapse in asset values, a reduced pace of real economic growth, banking problems, and deflation. Nearly two decades after the demise of the bubble economy, the prognosis for Japanese growth remains uncertain amid a turbulent global ...
The synchronized and long-lasting structural change on
... saw their assets under management soar. From less than $10 billion around the end of the last century, commodity assets under management reached a record high of $450 billion in April 2011 (Institute of International Finance, 2011). In the meantime, commodity investment specialists, asset managers a ...
... saw their assets under management soar. From less than $10 billion around the end of the last century, commodity assets under management reached a record high of $450 billion in April 2011 (Institute of International Finance, 2011). In the meantime, commodity investment specialists, asset managers a ...
econometric testing of purchasing power parity in less developed
... exchange rate period has become the fundamental object for the financial decisionmaking (see, Gibson et al. 1996). The developed countries have directly adopted the flexible exchange rate system after the collapse of Bretton Woods system in 1973, where all countries were required to sustain some ty ...
... exchange rate period has become the fundamental object for the financial decisionmaking (see, Gibson et al. 1996). The developed countries have directly adopted the flexible exchange rate system after the collapse of Bretton Woods system in 1973, where all countries were required to sustain some ty ...