Exchange Rate Regimes And Macroeconomic Stability

Author : Lok Sang Ho,Chi-Wa Yuen
Publisher : Springer Science & Business Media
Page : 258 pages
File Size : 48,5 Mb
Release : 2011-06-28
Category : Business & Economics
ISBN : 9781461510413

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Exchange Rate Regimes and Macroeconomic Stability by Lok Sang Ho,Chi-Wa Yuen Pdf

The Asian crisis of 1997-1998 was a major influence on macroeconomic thinking concerning exchange rate regimes, the functioning of international institutions, such as the IMF and the World Bank, and international contagion of macroeconomic instability from one country to another. Exchange Rate Regimes and Macroeconomic Stability offers perspectives on these issues from the viewpoints of two Nobel Laureates, an IMF economist, and Asian economists. This book contributes new ideas to the ongoing debate on the role of domestic monetary authorities and international institutions in reducing the likelihood of international financial crises, as well as the problems associated with various exchange rate regimes from the standpoint of macroeconomic stability. Overall, the chapters contained in this volume offer interesting perspectives, which have been stimulated by the recent events in the foreign exchange market. They provide a useful reference for anyone interested in the development of exchange rate regimes, and represent considerable reflection by economists half a century after Bretton Woods.

Author : Anonim
Publisher : Unknown
Page : 128 pages
File Size : 40,6 Mb
Release : 2010
Category : Electronic
ISBN : OCLC:1290827648

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Exchange Rate Regimes and Macroeconomic Stability by Anonim Pdf

In this paper I investigate the relevance of the exchange rate regime for macroeconomic stability. I simulate hypothetical macroeconomic developments under different hypothetical regimes in Sweden during the period 1974-1994. The main question is how stable output would have been if Sweden had had a floating exchange rate regime. Would it have been better with a floating exchange rate than the actual quasi-fixed regime? Also the development with an irrevocably fixed exchange rate is investigated. The results show that the choice of exchange rate regime does influence macroeconomic stability. More precisely, output volatility under the actual exchange rate regime is about the same as under the hypothetical floating exchange rate regime, but output is substantially more volatile under the hypothetical fixed exchange rate regimes.

Author : Mr.Atish R. Ghosh,Mr.Jonathan David Ostry,Mr.Charalambos G. Tsangarides
Publisher : International Monetary Fund
Page : 48 pages
File Size : 42,5 Mb
Release : 2011-03-15
Category : Business & Economics
ISBN : 9781589069312

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Exchange Rate Regimes and the Stability of the International Monetary System by Mr.Atish R. Ghosh,Mr.Jonathan David Ostry,Mr.Charalambos G. Tsangarides Pdf

The member countries of the International Monetary Fund collaborate to try to assure orderly exchange arrangements and promote a stable system of exchange rates, recognizing that the essential purpose of the international monetary system is to facilitate the exchange of goods, services, and capital, and to sustain sound economic growth. The paper reviews the stability of the overall system of exchange rates by examining macroeconomic performance (inflation, growth, crises) under alternative exchange rate regimes; implications of exchange rate regime choice for interaction with the rest of the system (external adjustment, trade integration, capital flows); and potential sources of stress to the international monetary system.

Author : Maria Luiza Falcão Silva
Publisher : Routledge
Page : 347 pages
File Size : 41,7 Mb
Release : 2018-08-17
Category : Business & Economics
ISBN : 9780429837203

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Modern Exchange-rate Regimes, Stabilisation Programmes and Co-ordination of Macroeconomic Policies by Maria Luiza Falcão Silva Pdf

Published in 1999, this work analyzes the phenomenon of macroeconomic adjustment, with special emphasis on selected Latin American countries facing stabilization programmes. It provides a historical description of the origins, functioning and collapse of exchange-rate regimes from the international classical gold standard period to modern arrangements. The author supports the argument that systemic asymmetries in the worldwide adjustment mechanism are inherent in the international monetary system. The recent theoretical literature dealing with the rules vs discretion debate and its interaction with the credibility issue is reviewed. This topic is intrinsically related to the dispute over the appropriate role of exchange-rate anchors in disinflation programmes. Against a background of academic dispute between advocates of exchange-rate prescriptions and monetary conceptions, the contrasting views of different theorists regarding the choice of exchange rate regimes are presented and assessed. Finally, a comparative analysis of recent experiments in Argentina, Brazil, Chile and Mexico with exchange-rate based disinflation stabilization programmes is undertaken. The problems that have arisen while establishing new institutional arrangements, such as new currency or a policy rule for monetary base creation, are examined.

Author : Fabrice Collard,Harris Dellas
Publisher : Unknown
Page : 44 pages
File Size : 47,7 Mb
Release : 2001
Category : Business cycles
ISBN : UVA:X006125318

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Exchange Rate Systems and Macroeconomic Stability by Fabrice Collard,Harris Dellas Pdf

Author : Mr.Christian Ebeke,Mr.Armand Fouejieu
Publisher : International Monetary Fund
Page : 36 pages
File Size : 54,5 Mb
Release : 2015-10-28
Category : Business & Economics
ISBN : 9781513586267

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Inflation Targeting and Exchange Rate Regimes in Emerging Markets by Mr.Christian Ebeke,Mr.Armand Fouejieu Pdf

This paper investigates the effects of the adoption of inflation targeting (IT) on the choice of exchange rate regime in emerging markets (EMs), conditional on certain macroeconomic conditions. Using a large sample of EMs and after controlling for the selection bias associated with the adoption of IT, we find that IT countries on average have a relatively more flexible exchange rate regime than other EMs. However, the flexibility of the exchange rate regime shows strong heterogeneity among IT countries depending on their degree of openness and exposure to FX risks. Moreover, we find that the marginal effect of IT adoption on the exchange rate flexibility increases with the duration of the IT regime in place, and with the propensity scores to adopt it.

Author : Marcel Aloy
Publisher : World Bank Publications
Page : 33 pages
File Size : 54,8 Mb
Release : 2008
Category : Currencies and Exchange Rates
ISBN : 8210379456XXX

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Intertemporal Adjustment and Fiscal Policy Under a Fixed Exchange Rate Regime by Marcel Aloy Pdf

Abstract: The paper presents a dynamic model for small to medium open economies operating under a fixed exchange rate regime. The model provides a partial explanation of the channels through which fiscal and monetary policy affects the real exchange rate. An empirical investigation is conducted for the case of Argentina during the currency board period of 1991-2001. Empirical estimates show that fiscal policy may indeed be an efficient instrument for promoting macroeconomic stability insofar as it encourages convergence toward long-run equilibrium and alters the long-term balance between exports and consumption, both private and public. The simulation applied to Argentina shows that if the share of public spending in the economy is higher than the share of imports, an increase in the tax rate will stimulate capital stock slightly, at least in the short term, and depreciate the real effective exchange rate. In the long run, the fiscal policy affects the value of the real exchange rate and consequently external competitiveness.

Author : Peter J. Quirk
Publisher : International Monetary Fund
Page : 30 pages
File Size : 42,6 Mb
Release : 1994-11-01
Category : Business & Economics
ISBN : 9781451855531

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Fixed or Floating Exchange Regimes by Peter J. Quirk Pdf

This paper reviews recent experience with the choice of floating or fixed (“anchor”) exchange regimes in industrial and developing countries. It concludes that desirable differences between the two sets of regimes have narrowed, owing to the useful operational role of exchange rate margins and unavoidable medium-term rate adjustments in the context of fixed regimes. A survey of recent empirical cross-country literature also suggests little unambiguous association of the choice of exchange regime with macroeconomic performance, inflation in particular. Stability of the exchange rate has generally been a by-product of other policy choices. Even announcement effects of the regime on inflation-fighting credibility depend on the country-specific assignments of policy instruments to more than one institution--central bank, government, or regional and multilateral institutions.

Author : Jan Herin
Publisher : Routledge
Page : 290 pages
File Size : 53,6 Mb
Release : 2019-03-12
Category : Political Science
ISBN : 9780429728174

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Flexible Exchange Rates/h by Jan Herin Pdf

This book contains the papers, comments, and the discussion at a conference on "Flexible Exchange Rates and Stabilization Policy", held at Saltsjobaden, Stockholm, August 26–27, 1975. The papers integrate the flexible exchange rates theory with macro theory and stabilization policy analysis. .

Author : Atish R. Ghosh,Anne-Marie Gulde,Holger C. Wolf
Publisher : MIT Press
Page : 252 pages
File Size : 55,7 Mb
Release : 2002
Category : Business & Economics
ISBN : 0262072408

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Exchange Rate Regimes by Atish R. Ghosh,Anne-Marie Gulde,Holger C. Wolf Pdf

An empirical study of exchange rate regimes based on data compiled from 150 member countries of the International Monetary Fund over the past thirty years. Few topics in international economics are as controversial as the choice of an exchange rate regime. Since the breakdown of the Bretton Woods system in the early 1970s, countries have adopted a wide variety of regimes, ranging from pure floats at one extreme to currency boards and dollarization at the other. While a vast theoretical literature explores the choice and consequences of exchange rate regimes, the abundance of possible effects makes it difficult to establish clear relationships between regimes and common macroeconomic policy targets such as inflation and growth. This book takes a systematic look at the evidence on macroeconomic performance under alternative exchange rate regimes, drawing on the experience of some 150 member countries of the International Monetary Fund over the past thirty years. Among other questions, it asks whether pegging the exchange rate leads to lower inflation, whether floating exchange rates are associated with faster output growth, and whether pegged regimes are particularly prone to currency and other crises. The book draws on history and theory to delineate the debate and on standard statistical methods to assess the empirical evidence, and includes a CD-ROM containing the data set used.

Author : Mr.Charalambos G. Tsangarides,MissMahvash Qureshi
Publisher : International Monetary Fund
Page : 46 pages
File Size : 43,6 Mb
Release : 2010-02-01
Category : Business & Economics
ISBN : 9781451963199

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The Empirics of Exchange Rate Regimes and Trade by Mr.Charalambos G. Tsangarides,MissMahvash Qureshi Pdf

This paper examines the impact of exchange rate regimes on bilateral trade while differentiating the effects of "words" and "deeds". Our findings-based on an extended database for de jure and de facto exchange rate classifications-show that while fixed exchange rate regimes increase trade, there is no systematic difference in the effects of policy announcements versus actions to maintain exchange rate stability. The trade generating effect of more stable exchange rate regimes is however more pronounced when words and actions are aligned, both in the short and long-run. Policy credibility therefore plays an important role in determining the effects of de jure and de facto exchange rate arrangements such that deviations between the two could be costly. In addition, we find evidence that (i) the impact of hard pegs such as currency unions is broadly similar to that of conventional pegs; (ii) the currency union and direct peg effects evolve over time; and (iii) the effects of more stable regimes are heterogeneous across country groups.

Author : Masson Paul R
Publisher : World Scientific
Page : 428 pages
File Size : 41,6 Mb
Release : 2019-07-23
Category : Business & Economics
ISBN : 9789811201738

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Macroeconomic Modelling And Monetary And Exchange Rate Regimes by Masson Paul R Pdf

This book presents articles that focus on the inter-related issues of choice of exchange rate and monetary policy regimes, and others that use a global macroeconomic model developed by the author and collaborators to quantify the effects of the 'baby boom' on global imbalances, costs of disinflation, and the effects of German unification. The book presents new analysis of the euro-zone experience and its applicability to other monetary unions, as well as a discussion of the prerequisites for successful inflation targeting. It is grounded in real-world data, readily accessible to non-specialists, and addresses important economic policy issues.

Author : I. Moosa
Publisher : Springer
Page : 267 pages
File Size : 45,7 Mb
Release : 2006-03-28
Category : Business & Economics
ISBN : 9780230504424

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Exchange Rate Regimes by I. Moosa Pdf

This book explores the exchange rate regime choice and the role played by the exchange rate in the economy. Approaching the classification of exchange rate regimes from theoretical, practical and historical perspectives, the book discusses pertinent case studies, including the choice of exchange rate regime in the post-conflict case of Iraq.

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 : 40,9 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 : Mr.Mohsin S. Khan,Mr.Peter Montiel,Bijan B. Aghevli
Publisher : International Monetary Fund
Page : 38 pages
File Size : 49,6 Mb
Release : 1991-05-15
Category : Business & Economics
ISBN : 1557752095

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Exchange Rate Policy in Developing Countries by Mr.Mohsin S. Khan,Mr.Peter Montiel,Bijan B. Aghevli Pdf

This paper addresses analytical aspects of exchange rate policy and emphasizes the relationship among exchange rate flexibility, financial discipline, and international competitiveness.