Moving To Greater Exchange Rate Flexibility

Author : Mrs.Gilda Fernandez,Mr.Cem Karacadag,Rupa Duttagupta
Publisher : International Monetary Fund
Page : 29 pages
File Size : 40,6 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 : Ms.Inci Ötker
Publisher : International Monetary Fund
Page : 94 pages
File Size : 54,6 Mb
Release : 2007-04-30
Category : Business & Economics
ISBN : 9781589066243

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Moving to Greater Exchange Rate Flexibility by Ms.Inci Ötker Pdf

Many countries have moved towards more flexible exchange rate regimes over the last decade to take advantage of greater monetary policy autonomy and flexibility in responding to external shocks. Some reluctance to let go of pegged exchange rates persists, however, despite the benefits of flexibility. The institutional and operational requirements needed to support a floating exchange rate, as well as difficulties in assessing the right time and manner to exit, tend to be additional factors in this reluctance. This volume presents the concrete steps taken by a number of countries in transition to greater exchange rate flexibility and elaborates on the operational ingredients that proved helpful in promoting successful and durable transitions. It attempts to provide a better understanding (and hence a "road map") of how these various operational ingredients were established and coordinated, how their implementation interacted with macro and other conditions, and how they contributed to the smoothness of each transition.

Author : Mrs.Gilda Fernandez,Mr.Cem Karacadag,Rupa Duttagupta
Publisher : International Monetary Fund
Page : 40 pages
File Size : 53,8 Mb
Release : 2004-07-01
Category : Business & Economics
ISBN : 9781451854930

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From Fixed to Float by Mrs.Gilda Fernandez,Mr.Cem Karacadag,Rupa Duttagupta Pdf

This paper identifies the institutional and operational requisites for transitions to floating exchange rate regimes. In particular, it explores key issues underlying the transition, including developing a deep and liquid foreign exchange market, formulating intervention policies consistent with the new regime, establishing an alternative nominal anchor in the context of a new monetary policy framework, and building the capacity of market participants to manage exchange rate risks and of supervisory authorities to regulate and monitor them. It also assesses the factors that influence the pace of exit and the appropriate sequencing of exchange rate flexibility and capital account liberalization.

Author : International Monetary Fund. Monetary and Financial Systems Dept.
Publisher : International Monetary Fund
Page : 48 pages
File Size : 43,7 Mb
Release : 2004-11-19
Category : Business & Economics
ISBN : 9781498330015

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From Fixed to Float-Operational Aspects of Moving Toward Exchange Rate Flexibility by International Monetary Fund. Monetary and Financial Systems Dept. Pdf

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Author : C. Fred Bergsten,George Nikolaus Halm
Publisher : Princeton University Press
Page : 451 pages
File Size : 42,9 Mb
Release : 2015-03-08
Category : Business & Economics
ISBN : 9781400867271

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Approaches to Greater Flexibility of Exchange Rates by C. Fred Bergsten,George Nikolaus Halm Pdf

This volume contains the papers presented and comments made at two conferences on the controversial subject of greater flexibility of exchange rates. The first of the conferences was held at Oyster Bay, New York, early in 1969, the second at Bürgenstock, Switzerland, in the summer of 1969. One half of the 40 conferees were academic economists, the others were practitioners of the foreign exchange markets, mostly bankers and a few executives of international business firms. Both the opposition to greater flexibility of exchange rates and the advocacy of more flexible systems are represented in these papers. The contrast between fixed or jumping exchange rates and gliding exchange rates is clearly described and the various systems of increased flexibility, such as the "wider band" and the "crawling peg," are explained and examined. Originally published in 1970. The Princeton Legacy Library uses the latest print-on-demand technology to again make available previously out-of-print books from the distinguished backlist of Princeton University Press. These editions preserve the original texts of these important books while presenting them in durable paperback and hardcover editions. The goal of the Princeton Legacy Library is to vastly increase access to the rich scholarly heritage found in the thousands of books published by Princeton University Press since its founding in 1905.

Author : Mr.Eswar Prasad,Mr.Thomas Rumbaugh,Mr.Qing Wang
Publisher : International Monetary Fund
Page : 32 pages
File Size : 49,9 Mb
Release : 2005-01-01
Category : Business & Economics
ISBN : 9781451975451

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Putting the Cart Before the Horse? Capital Account Liberalization and Exchange Rate Flexibility in China by Mr.Eswar Prasad,Mr.Thomas Rumbaugh,Mr.Qing Wang Pdf

This paper reviews the issues involved in moving towards greater exchange rate flexibility and capital account liberalization in China. A more flexible exchange rate regime would allow China to operate a more independent monetary policy, providing a useful buffer against domestic and external shocks. At the same time, weaknesses in China’s financial system suggest that capital account liberalization poses significant risks and should be a lower priority in the short term. This paper concludes that greater exchange rate flexibility is in China’s own interest and that, along with a more stable and robust financial system, it should be regarded as a prerequisite for undertaking a substantial liberalization of the capital account.

Author : Joseph E. Gagnon,Marc Hinterschweiger
Publisher : Peterson Institute
Page : 301 pages
File Size : 42,6 Mb
Release : 2011
Category : Business & Economics
ISBN : 9780881326352

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Flexible Exchange Rates for a Stable World Economy by Joseph E. Gagnon,Marc Hinterschweiger Pdf

Volatile exchange rates and how to manage them are a contentious topic whenever economic policymakers gather in international meetings. This book examines the broad parameters of exchange rate policy in light of both high-powered theory and real-world experience. What are the costs and benefits of flexible versus fixed exchange rates? How much of a role should the exchange rate play in monetary policy? Why don't volatile exchange rates destabilize inflation and output? The principal finding of this book is that using monetary policy to fight exchange rate volatility, including through the adoption of a fixed exchange rate regime, leads to greater volatility of employment, output, and inflation. In other words, the "cure" for exchange rate volatility is worse than the disease. This finding is demonstrated in economic models, in historical case studies, and in statistical analysis of the data. The book devotes considerable attention to understanding the reasons why volatile exchange rates do not destabilize inflation and output. The book concludes that many countries would benefit from allowing greater flexibility of their exchange rates in order to target monetary policy at stabilization of their domestic economies. Few, if any, countries would benefit from a move in the opposite direction.

Author : Mr.Atish R. Ghosh,MissMahvash Qureshi,Mr.Charalambos G. Tsangarides
Publisher : International Monetary Fund
Page : 43 pages
File Size : 45,7 Mb
Release : 2014-08-08
Category : Business & Economics
ISBN : 9781498359245

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Friedman Redux by Mr.Atish R. Ghosh,MissMahvash Qureshi,Mr.Charalambos G. Tsangarides Pdf

Milton Friedman argued that flexible exchange rates would facilitate external adjustment. Recent studies find surprisingly little robust evidence that they do. We argue that this is because they use composite (or aggregate) exchange rate regime classifications, which often mask very heterogeneous bilateral relationships between countries. Constructing a novel dataset of bilateral exchange rate regimes that differentiates by the degree of exchange rate flexibility, as well as by direct and indirect exchange rate relationships, for 181 countries over 1980–2011, we find a significant and empirically robust relationship between exchange rate flexibility and the speed of external adjustment. Our results are supported by several “natural experiments” of exogenous changes in bilateral exchange rate regimes.

Author : Gilda Fernandez,Rupa Duttagupta,Cem Karacadag
Publisher : International Monetary Fund
Page : 21 pages
File Size : 53,8 Mb
Release : 2006-01-01
Category : Business & Economics
ISBN : 1589065425

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Moving to a Flexible Exchange Rate by Gilda Fernandez,Rupa Duttagupta,Cem Karacadag 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 : Mr.Yan Carriere-Swallow,Mr.Nicolas E Magud,Juan Yepez
Publisher : International Monetary Fund
Page : 30 pages
File Size : 50,6 Mb
Release : 2018-10-01
Category : Business & Economics
ISBN : 9781484379370

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No Pain, All Gain? Exchange Rate Flexibility and the Expenditure-Switching Effect by Mr.Yan Carriere-Swallow,Mr.Nicolas E Magud,Juan Yepez Pdf

Theoretical models on the relationship between prices and exchange rates predict that the magnitude of expenditure switching affects the optimal choice of exchange rate regime. Focusing on the transmission of terms-of-trade shocks to domestic real variables we document that the magnitude of the expenditure switching effect is positively associated to the degree of exchange rate flexibility. Moreover, results show that flexible exchange rates allow for significant adjustment in relative prices, which in turn lowers the burden of adjustment on demand for domestic goods and, in some cases, facilitates a faster and more durable external adjustment process. These results, which are robust to accounting for possible non-linearities due to balance sheet effects or currency mismatches, shed new light on the shock absorbing properties of flexible exchange rates.

Author : Mr.Sonali Das
Publisher : International Monetary Fund
Page : 31 pages
File Size : 51,5 Mb
Release : 2019-03-07
Category : Business & Economics
ISBN : 9781498302029

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China’s Evolving Exchange Rate Regime by Mr.Sonali Das Pdf

China’s exchange rate regime has undergone gradual reform since the move away from a fixed exchange rate in 2005. The renminbi has become more flexible over time but is still carefully managed, and depth and liquidity in the onshore FX market is relatively low compared to other countries with de jure floating currencies. Allowing a greater role for market forces within the existing regime, and greater two-way flexibility of the exchange rate, are important steps to build on the progress already made. This should be complemented by further steps to develop the FX market, improve FX risk management, and modernize the monetary policy framework.

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 : 46,9 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 : Robert M. Dunn
Publisher : Unknown
Page : 44 pages
File Size : 43,9 Mb
Release : 1983
Category : Business & Economics
ISBN : 0881650617

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The Many Disappointments of Flexible Exchange Rates by Robert M. Dunn Pdf

Author : Jan Herin
Publisher : Routledge
Page : 280 pages
File Size : 43,7 Mb
Release : 2019-03-12
Category : Political Science
ISBN : 9780429708169

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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 : Mr. Marco Airaudo
Publisher : International Monetary Fund
Page : 65 pages
File Size : 47,7 Mb
Release : 2016-03-08
Category : Business & Economics
ISBN : 9781475523164

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Inflation Targeting and Exchange Rate Management In Less Developed Countries by Mr. Marco Airaudo Pdf

We analyze coordination of monetary and exchange rate policy in a two-sector model of a small open economy featuring imperfect substitution between domestic and foreign financial assets. Our central finding is that management of the exchange rate greatly enhances the efficacy of inflation targeting. In a flexible exchange rate system, inflation targeting incurs a high risk of indeterminacy where macroeconomic fluctuations can be driven by self-fulfilling expectations. Moreover, small inflation shocks may escalate into much larger increases in inflation ex post. Both problems disappear when the central bank leans heavily against the wind in a managed float.