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Does the Kiwi fly when the Kangaroo jumps?
Does the Kiwi fly when the Kangaroo jumps?

... exchange rates such as NZ/Yen, NZ/Euro) do respond to the Australian specific macroeconomic surprises in the same direction as the Australian dollar exchange rates responses, leaving the New Zealand - Australia cross exchange rate very stable (probably one of the most stable freely floating exchange ...
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... In recent years, however, capital flows other than those through official bilateral and multilateral channels have accounted for a growing share of total flows to developing countries. Commercial loans and autonomous flows of foreign direct and portfolio investment are now the main mechanisms for re ...
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Welfare Effects of Commodity Price and Exchange Rate Volatilities

... are exogenously set in world markets and denominated in foreign currency (the U.S. dollar). The central bank conducts its monetary policy by following a standard Taylor-type rule. The model’s structural parameters are either calibrated using common values or estimated using a maximum-likelihood proc ...
External Monetary Shocks to Central and Eastern European
External Monetary Shocks to Central and Eastern European

... countries. They found the macroeconomic volatility, to be impacted by the US shocks (e.g. a US monetary contraction induces an increase on inflation abroad). Makowiak (2007) goes further in concluding that when the “US sneeze, emerging countries catch a cold”. He implemented a VAR model, country by ...
is .rt of the NBER' s R. Artus July 1982
is .rt of the NBER' s R. Artus July 1982

... interest rates is expected to be. The second overshooting effect depends both on whether the substitution among assets denominated in different currencies is small and on whether private market participants view new data on the current account balance as containing new information on ...
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Monetary and Financial Policies in Emerging Markets
Monetary and Financial Policies in Emerging Markets

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Monetary and Financial Policies in Emerging Markets
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Exchange Rate Regimes of Developing Countries: Global Context
Exchange Rate Regimes of Developing Countries: Global Context

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The Reserve Bank’s new foreign exchange intervention policy
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Presentation to Chapman University, Orange, CA
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Extending the Reserve Bank’s macroeconomic balance model of the exchange rate
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This PDF is a selection from an out-of-print volume from... Bureau of Economic Research

... analysis and policy recommendations have been provided by HarrodDomar aggregate-growth models, static and dynamic linearprogramming models, and Chenery-Strout two-gap models.' These *This paper draws on Behrman, "Econometric Modeling of National Income Determination in Latin America, with Special Re ...
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... world, much of what they did immediately after the fall of Lehman was exactly right, though they were making it up as they went in the face of extreme uncertainty. They eased access to liquidity through innovative programs such as TALF, TAF, TARP, SMP, and LTRO. By lending long term without asking ...
Effects of U.S. Quantitative Easing on Latin American Economies
Effects of U.S. Quantitative Easing on Latin American Economies

... and, if so, we do not know the propagation mechanism of these shocks. The latter is related to the fact that most central banks in these economies have implemented macroprudential policies with the purpose of mitigating any potential systematic risk. Unconventional monetary policy measures were impl ...
Taylor Rules and Exchange Rate Predictability in Emerging
Taylor Rules and Exchange Rate Predictability in Emerging

... and Germany, they concluded that, in a one- to twelve-month forecasting horizon, the random walk model performs at least as well as the exchange rate models of that time, namely, the flexible price and sticky price monetary models and a hybrid model by Hooper and Morton (1982). A plethora of studies ...
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Fixed exchange-rate system

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime where a currency's value is fixed against either the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold. There are benefits and risks to using a fixed exchange rate. A fixed exchange rate is usually used in order to stabilize the value of a currency by directly fixing its value in a predetermined ratio to a different, more stable or more internationally prevalent currency (or currencies), to which the value is pegged. In doing so, the exchange rate between the currency and its peg does not change based on market conditions, the way floating currencies will do. This makes trade and investments between the two currency areas easier and more predictable, and is especially useful for small economies in which external trade forms a large part of their GDP.A fixed exchange-rate system can also be used as a means to control the behavior of a currency, such as by limiting rates of inflation. However, in doing so, the pegged currency is then controlled by its reference value. As such, when the reference value rises or falls, it then follows that the value(s) of any currencies pegged to it will also rise and fall in relation to other currencies and commodities with which the pegged currency can be traded. In other words, a pegged currency is dependent on its reference value to dictate how its current worth is defined at any given time. In addition, according to the Mundell–Fleming model, with perfect capital mobility, a fixed exchange rate prevents a government from using domestic monetary policy in order to achieve macroeconomic stability.In a fixed exchange-rate system, a country’s central bank typically uses an open market mechanism and is committed at all times to buy and/or sell its currency at a fixed price in order to maintain its pegged ratio and, hence, the stable value of its currency in relation to the reference to which it is pegged. The central bank provides the assets and/or the foreign currency or currencies which are needed in order to finance any payments imbalances.In the 21st century, the currencies associated with large economies typically do not fix or peg exchange rates to other currencies. The last large economy to use a fixed exchange rate system was the People's Republic of China which, in July 2005, adopted a slightly more flexible exchange rate system called a managed exchange rate. The European Exchange Rate Mechanism is also used on a temporary basis to establish a final conversion rate against the Euro (€) from the local currencies of countries joining the Eurozone.
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