Exchange Rates Interest Rates And Commodity Prices

Author : Meher Manzur
Publisher : Edward Elgar Publishing
Page : 0 pages
File Size : 42,8 Mb
Release : 2002
Category : Foreign exchange rates
ISBN : 1840648430

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Exchange Rates, Interest Rates, and Commodity Prices by Meher Manzur Pdf

This book explores the key issues relating to links between exchange rate instability and domestic inflation, including real exchange rate and interest rate manifestations, and the co-variability of exchange rates and commodity prices. The common theme throughout is the behaviour of asset prices and interest rates in international markets. A number of interrelated questions regarding the interactions of exchange rates, interest rates and commodity prices are posed: Why is purchasing power parity invariably controversial? Despite overwhelming evidence that sterilised central bank interventions are impotent, why do major industrialised countries (such as the G-7) continue to look for accords to stem exchange rate volatility? Why are the currencies of resource-based economies depreciating when the commodity prices are holding up? Has the link between exchange rates and commodity prices collapsed? In a world of increasing globalisation, why are interest rate movements so poorly correlated across countries? New insights to these and other fundamental questions in international finance are provided by way of empirical analyses. Whilst there remains much that is little understood, the conclusions concerning the validity of the theory of purchasing power parity are becoming more and more reliable. This book is a must-read for graduate students, researchers and lecturers interested in finance, economics or business. Exchange Rates, Interest Rates and Commodity Prices will also appeal to policymakers.

Author : John E. Floyd
Publisher : Springer Science & Business Media
Page : 406 pages
File Size : 47,9 Mb
Release : 2009-12-04
Category : Business & Economics
ISBN : 9783642102806

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Interest Rates, Exchange Rates and World Monetary Policy by John E. Floyd Pdf

A careful basic theoretical and econometric analysis of the factors determining the real exchange rates of Canada, the U.K., Japan, France and Germany with respect to the United States is conducted. The resulting conclusion is that real exchange rates are almost entirely determined by real factors relating to growth and technology such as oil and commodity prices, international allocations of world investment across countries, and underlying terms of trade changes. Unanticipated money supply shocks, calculated in five alternative ways have virtually no effects. A Blanchard-Quah VAR analysis also indicates that the effects of real shocks predominate over monetary shocks by a wide margin. The implications of these facts for the conduct of monetary policy in countries outside the U.S. are then explored leading to the conclusion that all countries, to avoid exchange rate overshooting, have tended to automatically follow the same monetary policy as the United States. The history of world monetary policy is reviewed along with the determination of real exchange rates within the Euro Area.

Author : Robert A. Amano,Simon Van Norden
Publisher : Unknown
Page : 52 pages
File Size : 55,6 Mb
Release : 1993
Category : Foreign exchange rates
ISBN : IND:30000105089621

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Terms of Trade and Real Exchange Rates by Robert A. Amano,Simon Van Norden Pdf

Author : Yakov Amihud,Richard M. Levich
Publisher : Beard Books
Page : 268 pages
File Size : 41,8 Mb
Release : 2003
Category : Business & Economics
ISBN : 1587981599

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Exchange Rates and Corporate Performance by Yakov Amihud,Richard M. Levich Pdf

This is a reprint of a previously published book. It consists of a series of papers by experts in the field on how the exchange rate volatility of the 1980s affected the financial policies of international firms.

Author : Jacob A. Frenkel,Harry G. Johnson
Publisher : Routledge
Page : 252 pages
File Size : 52,6 Mb
Release : 2013-07-18
Category : Business & Economics
ISBN : 9781135039462

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The Economics of Exchange Rates (Collected Works of Harry Johnson) by Jacob A. Frenkel,Harry G. Johnson Pdf

The studies in this book deal with the determination of foreign exchange rates and the characteristics of the foreign exchange market. Analysis is made of flexible exchange rates through an approach developed by the authors, called the ‘asset-market approach’. Theory is combined with practical application in a clear concise way that will be understood by readers with a basic understanding of economics.

Author : Dominique Yves Dupont,Mr.V. Hugo Juan-Ramon
Publisher : International Monetary Fund
Page : 72 pages
File Size : 50,9 Mb
Release : 1996-04
Category : Business & Economics
ISBN : UCSD:31822021498647

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Real Exchange Rates and Commodity Prices by Dominique Yves Dupont,Mr.V. Hugo Juan-Ramon Pdf

This paper examines the relations between fluctuations in real exchange rates among the major currencies and fluctuations in real commodity prices. Increased exchange rate volatility calls for a better understanding of these relations. To the best of our knowledge, no systematic study of those effects has been performed on a wide range of commodities, although Sjaastad and Scacciavillani (1993) have done so for gold. We build on their approach and construct a supply and demand multi-country model, with world market clearing, which incorporates speculative and non-speculative demands for inventories and “static” and “rational” expectations. We estimate the model using several econometric methods on monthly data from January 1972 to January 1992 for 65 commodity prices. The paper finds that, for a small group of commodities, the dollar-denominated price is significantly influenced by the deutsche mark and the yen. The empirical results show that geographical proximity matters, and that supply and demand elasticities are important in determining the commodity price in world markets above and beyond the size of the share of those commodities in world trade.

Author : Takatoshi Ito,Andrew K. Rose
Publisher : University of Chicago Press
Page : 352 pages
File Size : 52,9 Mb
Release : 2011-02-15
Category : Business & Economics
ISBN : 9780226386904

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Commodity Prices and Markets by Takatoshi Ito,Andrew K. Rose Pdf

Fluctuations of commodity prices, most notably of oil, capture considerable attention and have been tied to important economic effects, such as inflation and low rates of economic growth. Commodity Prices and Markets advances our understanding of the consequences of these fluctuations, providing both general analysis and a particular focus on the countries of the Pacific Rim. The volume addresses three distinct subjects: the difficulties in forecasting commodity prices, the effects of exogenous commodity price shocks on the domestic economy, and the relationship between price shocks and monetary policy. The ability to forecast commodity prices is difficult but of great importance to businesses and governments, and this volume will be invaluable to professionals and policy makers interested in the field.

Author : Tara Iyer
Publisher : International Monetary Fund
Page : 29 pages
File Size : 53,5 Mb
Release : 2017-07-10
Category : Business & Economics
ISBN : 9781484308936

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Exchange Rate Choices with Inflexible Markets and Costly Price Adjustments by Tara Iyer Pdf

This paper analyzes the appropriate choice of an exchange rate regime in agricultural commodity-exporting economies. In an open economy model that incorporates key structural characteristics of agricultural commodity exporters including dual labor markets, the benefits of exchange rate flexibility are shown to depend on the extent of labor and product market development. With developed markets, flexible exchange rates are preferred as they allow for greater relative price fluctuations, which amplify the transmission mechanism of labor reallocation upon commodity price volatility. When labor and product markets are not welldeveloped, however, international relative price adjustments exacerbate currency and factor misalignments. A nominal exchange rate peg, by mitigating relative wage and price fluctuations, increases welfare relative to a float. Given the current low level of labor and product market development across most agricultural commodity exporters, the study provides a counterpoint to conventional arguments in favor of flexible exchange rates and a rationale as to why exchange rate targeting is appropriate in agricultural economies.

Author : Erich Streissler
Publisher : Routledge
Page : 157 pages
File Size : 46,7 Mb
Release : 2002-03-14
Category : Business & Economics
ISBN : 9781134472680

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Exchange Rates and International Finance Markets by Erich Streissler Pdf

This book poses the important question of whether exchange rates are ultimately tied down by economic fundamentals. In a unique approach the subject is analysed from an asset holder's perspective and Streissler takes the reader through an authoritative and wide-ranging study including: *Friedman's case for flexible exchange rates *interest parity and purchasing power parity *process analysis of temporal exchange rate equilibria *stabilization through bounded interest rates and exchange rate theory *the problem of the neutrality of money

Author : Kenneth W. Clements
Publisher : Unknown
Page : 381 pages
File Size : 45,7 Mb
Release : 2013
Category : Consumer price indexes
ISBN : 1139615890

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Currencies, Commodities and Consumption by Kenneth W. Clements Pdf

"Currency values, prices, consumption and incomes are at the heart of the economic performance of all countries. In order to make a meaningful comparison between one economy and another, economists routinely make use of purchasing power parity (PPP) exchange rates, but whilst PPP rates are widely used and well understood they take a lot of effort to produce and suffer from publication delays. Currencies, Commodities and Consumption analyses the strengths and weaknesses of two alternatives to PPP. Firstly, the so-called 'Big Mac Index' which uses hamburger prices as a standard of measurement and secondly, a less well known technique which infers incomes across countries based on the proportion of consumption devoted to food. Kenneth Clements uses international macroeconomics, microeconomic theory and econometrics to provide researchers and policy makers with insights into alternatives to PPP rates and make sense of the ongoing instability of exchange rates and commodity prices"--

Author : Gustavo Adler,Noemie Lisack,Rui Mano
Publisher : International Monetary Fund
Page : 42 pages
File Size : 41,7 Mb
Release : 2015-06-23
Category : Business & Economics
ISBN : 9781513514864

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Unveiling the Effects of Foreign Exchange Intervention by Gustavo Adler,Noemie Lisack,Rui Mano Pdf

We study the effect of foreign exchange intervention on the exchange rate relying on an instrumental-variables panel approach. We find robust evidence that intervention affects the level of the exchange rate in an economically meaningful way. A purchase of foreign currency of 1 percentage point of GDP causes a depreciation of the nominal and real exchange rates in the ranges of [1.7-2.0] percent and [1.4-1.7] percent respectively. The effects are found to be quite persistent. The paper also explores possible asymmetric effects, and whether effectiveness depends on the depth of domestic financial markets.

Author : Takatoshi Ito,Andrew K. Rose
Publisher : University of Chicago Press
Page : 346 pages
File Size : 42,5 Mb
Release : 2011-03
Category : Business & Economics
ISBN : 9780226386898

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Commodity Prices and Markets by Takatoshi Ito,Andrew K. Rose Pdf

Fluctuations of commodity prices, most notably of oil, capture considerable attention and have been tied to important economic effects. This book advances our understanding of the consequences of these fluctuations, providing both general analysis and a particular focus on the countries of the Pacific Rim.

Author : Marcus Miller,Marcus H. Miller,Barry J. Eichengreen,Richard Portes
Publisher : Unknown
Page : 360 pages
File Size : 42,6 Mb
Release : 1989
Category : Economic policy
ISBN : UCSC:32106008858901

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Blueprints for Exchange-rate Management by Marcus Miller,Marcus H. Miller,Barry J. Eichengreen,Richard Portes Pdf

This book addresses the growing debate over proposals for international monetary reform and the tentative attempts, for example at the Louvre and Plaza accords, to achieve greater coordination of macroeconomic policies. The first section draws lessons from the experience of the interwar Gold Standard, the Bretton Woods system, and the EMS. Four papers examine theoretical issues underlying the design of coordinated economic policies. Contributors explore the use of commodity prices as indicators of inflationary pressures and analyze exchange rate target bands using concepts first developed in the financial literature. The final chapters present empirical evaluations of the performance of alternative exchange rate regimes, adding to the existing literature on the design of gains from coordinated economic policies. The contributors, drawn from academic and policy circles, include leading advocates of exchange rate target zones and 'disciplined floating'. This book is of interest to students of international macroeconomics and policy coordination and to all those who have followed the debate on the evolution of the international monetary system.

Author : Assaf Razin,Hans-Jürgen Vosgerau
Publisher : Springer Science & Business Media
Page : 300 pages
File Size : 40,5 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9783642608469

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Trade and Tax Policy, Inflation and Exchange Rates by Assaf Razin,Hans-Jürgen Vosgerau Pdf

Ass a f R a z i nand Hans-Jiirgen Vosgerau The eight chapters of this volume have been grouped into two parts. Part A of contains chapters which are mainly monetary in character, whereas real aspects international economics are treated in Part B. It goes without saying that this is only a device for structuring the field. In substance most chapters reveal the close connections between real and monetary aspects. Part A on "Inflation, Exchange Rates, and Macro-Economic Adjustment in the Global Economy" consists of four papers. In recent years, an inflation targeting framework for monetary policy has been adopted by New Zealand, Canada, the United Kingdom, Finland, Sweden, Australia, and Spain (in chronological order). The use of inflation targeting can be viewed as a further step in the evolution of monetary policy techniques adopted by central banks. A common feature of the countries that have adopted inflation targets is the relatively poor inflation record over the last 30 years compared with other industrial countries such as Germany, Switzerland, Japan and the United States. Because of their relatively good inflation record, this latter group of countries has not explicitly adopted inflation targeting. With, or without, explicit inflation targeting the monetary policy credibility hinges on the independence of the central bank. Alex Cukierman addresses the issue of central bank independence by surveying alternative ways to characterize independence.

Author : Kenneth W. Clements
Publisher : Cambridge University Press
Page : 401 pages
File Size : 46,9 Mb
Release : 2013-01-31
Category : Business & Economics
ISBN : 9781107014763

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Currencies, Commodities and Consumption by Kenneth W. Clements Pdf

Discusses economic issues associated with exchange rates, commodity prices, the economic size of countries and alternatives to PPP exchange rates.