Changes In Exchange Rates In Rapidly Developing Countries

Author : Takatoshi Ito,Anne O. Krueger
Publisher : University of Chicago Press
Page : 466 pages
File Size : 46,5 Mb
Release : 2007-12-01
Category : Business & Economics
ISBN : 9780226386935

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Changes in Exchange Rates in Rapidly Developing Countries by Takatoshi Ito,Anne O. Krueger Pdf

The exchange rate is a crucial variable linking a nation's domestic economy to the international market. Thus choice of an exchange rate regime is a central component in the economic policy of developing countries and a key factor affecting economic growth. Historically, most developing nations have employed strict exchange rate controls and heavy protection of domestic industry-policies now thought to be at odds with sustainable and desirable rates of economic growth. By contrast, many East Asian nations maintained exchange rate regimes designed to achieve an attractive climate for exports and an "outer-oriented" development strategy. The result has been rapid and consistent economic growth over the past few decades. Changes in Exchange Rates in Rapidly Developing Countries explores the impact of such diverse exchange control regimes in both historical and regional contexts, focusing particular attention on East Asia. This comprehensive, carefully researched volume will surely become a standard reference for scholars and policymakers.

Author : Miguel A. Kiguel,J. Saul Lizondo,Stephen A. O'Connell
Publisher : Springer
Page : 411 pages
File Size : 51,6 Mb
Release : 2016-07-27
Category : Business & Economics
ISBN : 9781349255207

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Parallel Exchange Rates in Developing Countries by Miguel A. Kiguel,J. Saul Lizondo,Stephen A. O'Connell Pdf

'...the most definitive study of the subject, assembling an all-star cast to address the many outstanding questions and succeeding beyond expectations in combining elegant theory and state of the art econometrics to reach very sensible policy conclusions.' - Mohsin S. Khan, Deputy Director, Research Department, International Monetary Fund ' This book fills an important vacuum in the literature of the economic consequences of parallel markets and should prove of great value to students of economic development and to policy-makers in developing countries as they struggle to reform their exchange rate and trade incentive systems. Here they will find all that they need to know.' - Vittorio Corbo, Professor of Economics, Universidad Catolica de Chile 'A most comprehensive treatment of the relationships between parallel foreign exchange markets and macroeconomic policies, both across countries and over time. The book substantially enhances our understanding of how these systems work in practice and will be of great interest to policy-makers, researchers and graduate students of economic policy.' - Samuel M. Wangwe, Professor of Economics, University of Dar es Salaam and Executive Director, Economic and Social Research Foundation, Dar es Salaam, Tanzania This book examines extensive empirical evidence on the macroeconomic implications of parallel exchange rates in developing countries. Eight case-studies from Africa, Latin America, and Turkey provide detailed evidence on the emergence of parallel exchange rates, their impact on macroeconomic performance, and the criteria for successful exchange-rate unification. A chapter on European dual exchange rates summarizes the contrasting experience of industrial countries. An overview chapter lays out the analytical framework, assesses the evidence, and draws policy conclusions.

Author : Mrs.Gilda Fernandez,Mr.Cem Karacadag,Rupa Duttagupta
Publisher : International Monetary Fund
Page : 29 pages
File Size : 47,6 Mb
Release : 2006-01-09
Category : Business & Economics
ISBN : 9781589064768

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Moving to a Flexible Exchange Rate by Mrs.Gilda Fernandez,Mr.Cem Karacadag,Rupa Duttagupta Pdf

A growing number of countries are adopting flexible exchange rate regimes because flexibility offers more protection against external shocks and greater monetary independence. Other countries have made the transition under disorderly conditions, with the sharp depreciation of their currency during a crisis. Regardless of the reason for adopting a flexible exchange rate, a successful transition depends on the effective management of a number of institutional and operational issues. The authors of this Economic Issue describe the necessary ingredients for moving to a flexible regime, as well as the optimal pace and sequencing under different conditions.

Author : Michael G. Hall
Publisher : Routledge
Page : 226 pages
File Size : 49,9 Mb
Release : 2018-01-18
Category : Political Science
ISBN : 9781351158435

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Exchange Rate Crises in Developing Countries by Michael G. Hall Pdf

According to many economists, the increasing mobility of capital across borders has made it more costly to peg exchange rates. This phenomenon has contributed to some of the more famous examples of exchange rate crises in recent times, such as the Mexican peso crisis in 1994 and the Asian financial crisis in 1997. Yet despite the increasing costs of pegging in today's accelerated financial markets, some developing countries try to maintain a peg for as long as they can. This work is the first to theorize the role of bankers as a domestic interest group involved in exchange rate policy. It adds to our understanding of how interest groups affect economic policy in developing countries and explains why some of the largest and fastest growing economies in the developing world were the most prone to crisis. The volume also refines our understanding of the 'hollowing-out thesis', the argument that increasing capital mobility is forcing states to abandon pegging.

Author : Pierre-Richard Agénor
Publisher : International Monetary Fund
Page : 44 pages
File Size : 51,9 Mb
Release : 1990-03-01
Category : Business & Economics
ISBN : 9781451923230

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Stabilization Policies in Developing Countries with a Parallel Market for Foreign Exchange by Pierre-Richard Agénor Pdf

The paper develops and tests a model of a developing economy that incorporates trade and capital restrictions, illegal transactions, a parallel foreign exchange market, currency substitution features, and forward-looking rational expectations. Temporary expansionary demand policies are associated with an increase in output and prices, a fall in the stock of net foreign assets, and a depreciation of the parallel exchange rate. The speed of adjustment is inversely related to the degree of rationing in the official foreign currency market. A once-for–all devaluation of the official exchange rate has no long-term effect on the premium.

Author : Sebastian Edwards,Liaquat Ahamed
Publisher : University of Chicago Press
Page : 460 pages
File Size : 53,5 Mb
Release : 2007-12-01
Category : Business & Economics
ISBN : 9780226184739

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Economic Adjustment and Exchange Rates in Developing Countries by Sebastian Edwards,Liaquat Ahamed Pdf

In spite of the attention paid exchange rates in recent economic debates on developing countries, relatively few studies have systematically analyzed in detail the various ramifications of exchange rate policy in these countries. In this new volume from the National Bureau of Economic Research, leading economists use rigorous models to tackle various exchange rate issues, while also illuminating policy implications that emerge from their analyses. The volume, divided into four main sections, addresses: the role of exchange rates in stabilization programs and the adjustment process; the importance of exchange rate policy during liberalization reform in developing countries; exchange rate problems relevant and unique to developing countries, illustrated by case studies; and the problems defining, measuring, and identifying determinants of real exchange rates. Authors of individual papers examine the relation between commercial policies and exchange rates, the role of exchange rate policy in stabilization programs, the effectiveness of devaluations as a policy tool, and the interaction between exchange rate terms of trade an capital flow. This research will not only prove crucial to our understanding of the role of exchange rates in developing countries, but will clearly set the standard for future work in the field.

Author : Peter J. Quirk
Publisher : International Monetary Fund
Page : 58 pages
File Size : 45,5 Mb
Release : 1987-05-15
Category : Business & Economics
ISBN : UCSD:31822015452790

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Floating Exchange Rates in Developing Countries by Peter J. Quirk Pdf

In recent years, an increasing number of developing countries have adopted market-determined floating exchange rates. This development has represented a significant step forward in the evolution toward exchange rate flexibility that has taken place in the developing country group since the adoption of generalized floating by industrial countries in 1973.

Author : Mr.Kenneth Rogoff,Mr.Ashoka Mody,Nienke Oomes,Mr.Robin Brooks,Mr.Aasim M. Husain
Publisher : International Monetary Fund
Page : 85 pages
File Size : 41,6 Mb
Release : 2003-12-01
Category : Business & Economics
ISBN : 9781451875843

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Evolution and Performance of Exchange Rate Regimes by Mr.Kenneth Rogoff,Mr.Ashoka Mody,Nienke Oomes,Mr.Robin Brooks,Mr.Aasim M. Husain Pdf

Using recent advances in the classification of exchange rate regimes, this paper finds no support for the popular bipolar view that countries will tend over time to move to the polar extremes of free float or rigid peg. Rather, intermediate regimes have shown remarkable durability. The analysis suggests that as economies mature, the value of exchange rate flexibility rises. For countries at a relatively early stage of financial development and integration, fixed or relatively rigid regimes appear to offer some anti-inflation credibility gain without compromising growth objectives. As countries develop economically and institutionally, there appear to be considerable benefits to more flexible regimes. For developed countries that are not in a currency union, relatively flexible exchange rate regimes appear to offer higher growth without any cost in credibility.

Author : M. Rusydi,S. Islam
Publisher : Springer
Page : 152 pages
File Size : 42,8 Mb
Release : 2007-07-12
Category : Business & Economics
ISBN : 9780230592483

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Quantitative Exchange Rate Economics in Developing Countries by M. Rusydi,S. Islam Pdf

This book examines the options for adopting an appropriate model of the exchange rate determination and its associated regime suitable for developing countries. It shows that a credible exchange rate regime and policy may mitigate the flight to currency from broad money, and ensure stability and certainty for private sectors.

Author : International Monetary Fund. Legal Dept.,International Monetary Fund. Research Dept.,International Monetary Fund. Statistics Dept.,International Monetary Fund. European Dept.,International Monetary Fund. African Dept.,International Monetary Fund. Asia and Pacific Dept,International Monetary Fund. Finance Dept.,International Monetary Fund. Policy Development and Review Dept.,International Monetary Fund. Strategy, Policy, & Review Department
Publisher : International Monetary Fund
Page : 45 pages
File Size : 44,8 Mb
Release : 2006-10-10
Category : Business & Economics
ISBN : 9781498332132

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Exchange Rates and Trade Balance Adjustment in Emerging Market Economies by International Monetary Fund. Legal Dept.,International Monetary Fund. Research Dept.,International Monetary Fund. Statistics Dept.,International Monetary Fund. European Dept.,International Monetary Fund. African Dept.,International Monetary Fund. Asia and Pacific Dept,International Monetary Fund. Finance Dept.,International Monetary Fund. Policy Development and Review Dept.,International Monetary Fund. Strategy, Policy, & Review Department Pdf

The paper finds that simple econometric specifications yield surprising rich and complex dynamics -- relative prices respond to the nominal exchange rate and pass-through effects, import and export volumes respond to relative price changes, and the trade balance responds to changes in import and export values.

Author : Richard N. Cooper
Publisher : Princeton, N.J. : International Finance Section, Princeton University
Page : 48 pages
File Size : 55,6 Mb
Release : 1971
Category : Business & Economics
ISBN : UOM:49015001125898

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Currency Devaluation in Developing Countries by Richard N. Cooper Pdf

Author : Helmut W. Mayer
Publisher : Unknown
Page : 24 pages
File Size : 41,5 Mb
Release : 1987
Category : Debts, External
ISBN : UCAL:B3933293

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The Impact of Exchange Rate Changes Between Key Currencies on the Debt Structure and Debt Service Burden of Developing Countries by Helmut W. Mayer Pdf

Author : Aaditya Mattoo,Ms.Prachi Mishra,Mr.Arvind Subramanian
Publisher : International Monetary Fund
Page : 39 pages
File Size : 42,5 Mb
Release : 2012-03-01
Category : Business & Economics
ISBN : 9781475516876

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Spillover Effects of Exchange Rates by Aaditya Mattoo,Ms.Prachi Mishra,Mr.Arvind Subramanian Pdf

This paper estimates the impact of China's exchange rate changes on exports of competitor countries in third markets, which we call the "spillover effect". We use recent theory to develop an identification strategy in which competition between China and its developing country competitors in specific products and destinations plays a key role. We exploit the variation - afforded by disaggregated trade data - across exporters, importers, product, and time to estimate this spillover effect. We find robust evidence of a statistically and quantitatively significant spillover effect. Our estimates suggest that a 10 percent appreciation of China's real exchange rate boosts on average a developing country's exports of a typical 4-digit HS product category to third markets by about 1.5-2 percent. The magnitude of the spillover effect varies systematically with product characteristics as implied by theory.

Author : Sebastian Edwards,World Bank
Publisher : Johns Hopkins University Press
Page : 112 pages
File Size : 51,9 Mb
Release : 1988
Category : Developing countries
ISBN : UCSD:31822004022596

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Exchange Rate Misalignment in Developing Countries by Sebastian Edwards,World Bank Pdf

This article analyzes the theory of equilibrium real exchange rates and defines misalignment as a deviation of the real exchange rate (RER) from its equilibrium level. The role of macroeconomic policies is then analyzed under three alternative nominal exchange rate regimes: predetermined nominal exchange rates; floating nominal rates; and dual or black market nominal exchange rates. This discussion points out how inconsistent macroeconomic policies often lead to real exchange rate misalignment. Corrective measures, including nominal devaluation and several alternative approaches, are then evaluated.

Author : Alak Ghosh,Rakesh Raman
Publisher : Deep and Deep Publications
Page : 384 pages
File Size : 44,6 Mb
Release : 2000
Category : Economic stabilization
ISBN : 8176292680

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Exchange Rate Behaviour in Developing Countries by Alak Ghosh,Rakesh Raman Pdf