Equilibrium Exchange Rates In The Transition

Author : Lionel Halpern,Mr.Charles Wyplosz
Publisher : International Monetary Fund
Page : 40 pages
File Size : 46,9 Mb
Release : 1996-11-01
Category : Business & Economics
ISBN : 9781451854794

Get Book

Equilibrium Exchange Rates in Transition Economies by Lionel Halpern,Mr.Charles Wyplosz Pdf

A stylized fact of the transition process is an early profound exchange rate depreciation followed by continuing real appreciation. Absent historical reference points, it is difficult to judge whether the real appreciation is threatening competitiveness. This paper interprets the stylized facts and offers estimates of the equilibrium real exchange rate based on an international comparison of dollar wages and on a study of the dynamics of real exchange rates in several transition economies. The results suggest that the process of real appreciation is a combination of a return to equilibrium following the early overshooting and equilibrium appreciation.

Author : Balázs Égert
Publisher : Unknown
Page : 63 pages
File Size : 41,9 Mb
Release : 2007
Category : Electronic
ISBN : OCLC:1290322679

Get Book

Equilibrium Exchange Rates in the Transition by Balázs Égert Pdf

This paper sets out to estimate equilibrium real exchange rates for the Czech Republic, Hungary, Poland, Slovakia and Slovenia. A theoretical model is developed that provides an explanation for the appreciation of the real exchange rate based on tradable prices in the acceding countries. Our model can be considered as a competing but also completing framework to the traditional Balassa-Samuelson model. With this as a background, alternative cointegration methods are applied to time series (Engle-Granger, DOLS, ARDL and Johansen) and to three small-size panels (pooled and fixed effect OLS, DOLS, PMGE and MGE), which leaves us with around 5,000 estimated regressions. This enables us to examine the uncertainty surrounding estimates of equilibrium real exchange rates and the size of the underlying real misalignments.

Author : Balázs Égert,Kirsten Lommatzsch,Suomen Pankki. Siirtymätalouksien tutkimuslaitos
Publisher : Unknown
Page : 59 pages
File Size : 40,7 Mb
Release : 2004
Category : Foreign exchange rates
ISBN : 9516869602

Get Book

Equilibrium exchange rates in the transition by Balázs Égert,Kirsten Lommatzsch,Suomen Pankki. Siirtymätalouksien tutkimuslaitos Pdf

Tiivistelmä.

Author : Balázs Égert,Kirsten Lommatzsch
Publisher : Unknown
Page : 59 pages
File Size : 48,5 Mb
Release : 2004
Category : Electronic
ISBN : 9516869610

Get Book

Equilibrium Exchange Rates in the Transition by Balázs Égert,Kirsten Lommatzsch Pdf

This paper sets out to estimate equilibrium real exchange rates for the Czech Republic, Hungary, Poland, Slovakia and Slovenia. A theoretical model is developed that provides an explanation for the appreciation of the real exchange rate based on tradable prices in the acceding countries. Our model can be considered as a competing but also completing framework to the traditional Balassa-Samuelson model. With this as a background, alternative cointegration methods are applied to time series (Engle-Granger, DOLS, ARDL and Johansen) and to three small-size panels (pooled and fixed effect OLS, DOLS, PMGE and MGE), which leaves us with around 5,000 estimated regressions. This enables us to examine the uncertainty surrounding estimates of equilibrium real exchange rates and the size of the underlying real misalignments.

Author : Ronald MacDonald,Jerome L. Stein
Publisher : Springer Science & Business Media
Page : 364 pages
File Size : 47,5 Mb
Release : 1999-07-31
Category : Business & Economics
ISBN : 0792384245

Get Book

Equilibrium Exchange Rates by Ronald MacDonald,Jerome L. Stein Pdf

How successful is PPP, and its extension in the monetary model, as a measure of the equilibrium exchange rate? What are the determinants and dynamics of equilibrium real exchange rates? How can misalignments be measured, and what are their causes? What are the effects of specific policies upon the equilibrium exchange rate? The answers to these questions are important to academic theorists, policymakers, international bankers and investment fund managers. This volume encompasses all of the competing views of equilibrium exchange rate determination, from PPP, through other reduced form models, to the macroeconomic balance approach. This volume is essentially empirical: what do we know about exchange rates? The different econometric and theoretical approaches taken by the various authors in this volume lead to mutually consistent conclusions. This consistency gives us confidence that significant progress has been made in understanding what are the fundamental determinants of exchange rates and what are the forces operating to bring them back in line with the fundamentals.

Author : László Halpern,Charles Wyplosz
Publisher : Unknown
Page : 42 pages
File Size : 54,6 Mb
Release : 1995
Category : Cuestión monetaria - Estudios comparados
ISBN : OCLC:122300186

Get Book

Equilibrium Real Exchange Rates in Transition by László Halpern,Charles Wyplosz Pdf

Author : Tamim Bayoumi
Publisher : Unknown
Page : 58 pages
File Size : 54,8 Mb
Release : 1994
Category : Foreign exchange rates
ISBN : UCSD:31822016815946

Get Book

Robustness of Equilibrium Exchange Rate Calculations to Alternative Assumptions and Methodologies by Tamim Bayoumi Pdf

Author : David Bigman,Teizo Taya
Publisher : Beard Books
Page : 356 pages
File Size : 52,8 Mb
Release : 2003-03
Category : Business & Economics
ISBN : 1587981297

Get Book

Floating Exchange Rates and the State of World Trade and Payments by David Bigman,Teizo Taya Pdf

Analyzes developments in the international monetary system since 1973, with anew added epilogue.

Author : Mr.Tarhan Feyzioglu
Publisher : International Monetary Fund
Page : 25 pages
File Size : 44,8 Mb
Release : 1997-09-01
Category : Business & Economics
ISBN : 9781451853179

Get Book

Estimating the Equilibrium Real Exchange Rate by Mr.Tarhan Feyzioglu Pdf

An equilibrium exchange rate is here defined as the level that is consistent with simultaneous internal and external balances as specified in Montiel (1996). Exogenous “fundamental” variables determining these balances are identified. Along the lines of Edwards (1994), a reduced form is estimated with the cointegration technique for Finland for the period 1975-95. The estimation produced a reasonable set of equilibrium exchange rates that appreciate with positive shocks to the terms of trade, world real interest rates, and the productivity differential between Finland and its trading partners.

Author : Mr.Angel J. Ubide,J. Humberto Lopez,Mr.Enrique Alberola Ila,Ms.Susana Garcia Cervero
Publisher : International Monetary Fund
Page : 44 pages
File Size : 41,5 Mb
Release : 1999-12-01
Category : Business & Economics
ISBN : 9781451858730

Get Book

Global Equilibrium Exchange Rates by Mr.Angel J. Ubide,J. Humberto Lopez,Mr.Enrique Alberola Ila,Ms.Susana Garcia Cervero Pdf

This paper presents a methodology for calculating bilateral equilibrium exchange rates for a panel of currencies in a way that guarantees global consistency. The methodology has three parts: a theoretical model that encompasses the balance of payments and the Balassa-Samuelson approaches to real exchange rate determination; an unobserved components decomposition in a cointegration framework that identifies a time-varying equilibrium real exchange rate; and an algebraic transformation that extracts bilateral equilibrium nominal rates. The results uncover that, by the start of Stage III of the European Economic and Monetary Union (EMU), the euro was significantly undervalued against the dollar and the pound, but overvalued against the yen. The paper also shows that the four major EMU currencies locked their parities with the euro at a rate close to equilibrium.

Author : Mario I. Blejer,Marko Skreb
Publisher : Springer Science & Business Media
Page : 501 pages
File Size : 55,8 Mb
Release : 2007-08-23
Category : Business & Economics
ISBN : 9780585313467

Get Book

Balance of Payments, Exchange Rates, and Competitiveness in Transition Economies by Mario I. Blejer,Marko Skreb Pdf

Integrating transition economies into the global commercial and trade market system is a prolonged and risky process. This book is a collection of studies dealing with the different issues related to the liberalization of external relations in economies moving from a socialist to a market-based system The focus is on external sector developments, and the topics deal with balance of payments conditions, exchange rate policies and regimes, international competitiveness, international capital flows, trade, and other matters related to the integration of transition economies into the world economy. An understanding of the principles involved and of the experiences of both transition and advanced economies during this process is crucial to ensure its ultimate success. Written by internationally recognized scholars, the chapters cover these issues in a systematic manner. The first section treats current account developments, capital flows, and exchange rate policies in transition countries, the second section deals with specific issues related to international trade, and the final section consists of six specific country experiences. In this final section, a chapter dealing with the Russian Federation discusses the collapse of the ruble in August 1998.

Author : John Williamson
Publisher : Peterson Institute
Page : 608 pages
File Size : 41,8 Mb
Release : 1994
Category : Business & Economics
ISBN : 0881320765

Get Book

Estimating Equilibrium Exchange Rates by John Williamson Pdf

The problems of exchange rate misalignments and the resulting payments imbalances have plagued the world economy for decades. At the Louvre Accord of 1987, the Group of Five industrial countries adopted a system of reference ranges for exchange rate management, influenced by proposals of C. Fred Bergstan and John Williamson for a target zone system. The reference range approach has, however, been operated only intermittently and half-heartedly, and questions continue to be raised in policy and scholarly circles about the design and operation of a full-fledged target zone regime. This volume, with chapters by leading international economists, explores one crucial issue in the design of a target zone system: the problem of calculating Williamson's concept of the fundamental equilibrium exchange rate (FEER). Williamson contributes an overview of the policy and analytic issues and a second chapter on his own calculations.

Author : Peter Isard
Publisher : International Monetary Fund
Page : 54 pages
File Size : 55,9 Mb
Release : 2007-12
Category : Business & Economics
ISBN : UCSD:31822036950368

Get Book

Equilibrium Exchange Rates by Peter Isard Pdf

The paper describes six different methodologies that have been used to assess the equilibrium values of exchange rates and discusses their limitations. It applies several of the approaches to data for the United States as of 2006, illustrates that different approaches sometimes provide substantially different assessments, and asks which methodologies deserve the most weight in such situations. It argues that while it is generally desirable to consider the implications of several different approaches, since different approaches provide different types of perspectives, two of the methodologies seem particularly relevant for identifying threats to macroeconomic stability and growth.

Author : Paul J.J. Welfens,Anna Wziatek-Kubiak
Publisher : Springer Science & Business Media
Page : 290 pages
File Size : 49,5 Mb
Release : 2005-12-06
Category : Political Science
ISBN : 9783540285267

Get Book

Structural Change and Exchange Rate Dynamics by Paul J.J. Welfens,Anna Wziatek-Kubiak Pdf

Structural change, economic growth and adequate exchange rate adjustment are key challenges in the context of EU eastern enlargement as are consistent macroeconomic policies. The authors focus on sectoral adjustment across industries in catching-up countries and explain changes in the composition of output – this includes new aspects of the Chenery model. They describe and analyze the spatial pattern of specialization and adjustment in many countries. Theoretical and empirical analysis of foreign direct investment, innovation and structural change shed new light on economic dynamics in Old Europe and New Europe. As regards exchange rate dynamics both traditional aspects (such as the Balassa-Samuelson effect) and new approaches to understanding exchange rate developments are presented. Links between exchange rate changes and innovation are particularly emphasized.

Author : P. Karadeloglou,V. Terraza
Publisher : Springer
Page : 255 pages
File Size : 47,6 Mb
Release : 2008-02-13
Category : Business & Economics
ISBN : 9780230582699

Get Book

Exchange Rates and Macroeconomic Dynamics by P. Karadeloglou,V. Terraza Pdf

This book looks at the PPP persistence puzzle, and econometric aspects of exchange rate dynamics and their implications. It also explores the importance of exchange rate dynamics in the pass-through effects (PTE) and the econometric aspects of the exchange rates dynamics linked to structural shocks on different economies.