Download or read book Essays on Macroeconomic Performance Under Alternative Exchange Rate Regimes written by Christian Miguel Broda and published by . This book was released on 2001 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt: (Cont.) Uncertainty and the behavior of the monetary authority can affect the wage setting behavior of private agents. Under a peg, agents require a wage premium relative to floats, to be compensated for the higher variability in employment. This, in turn, implies a higher consumption based price level. However, an endogenous choice of the exchange rate regime and a less than fully accommodating policy in floats can potentially undo this result. Finally, the third chapter provides a simple dynamic framework to study the relation between the banking sector's safety nets and the share of foreign currency (dollar) deposits. When deposit and bank insurance schemes that do not discriminate between currencies they introduce a cross-transfer from local currency (peso) to dollar deposits that favors deposit dollarization and results in an increased currency exposure of banks. Second, the presence of a lender of last resort, by reducing the cost of risk to banks, stimulates dollar financing.

Download or read book Four essays on macroeconomic volatility and instability under alternative exchange rate regimes written by Olivier Pierre Marie Loisel and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Macroeconomic Performance Under Alternative Exchange Rate Regimes written by Mr.Esteban Jadresic and published by International Monetary Fund. This book was released on 1998-08-01 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reexamines the macroeconomic effects of wage indexation in an open economy under alternative exchange rate regimes. The main finding is that, once the lags in actual indexation rules are considered, wage indexation affects output behavior substantially less than posited in the previous academic literature. This result implies that the academic view that wage indexation makes a flexible exchange rate generally preferable is unwarranted and suggests that the choice of exchange rate regime with and without wage indexation depends on similar factors. The analysis also reveals that the net effects of wage indexation on macroeconomic stability are ambiguous.

Download or read book Evolution and Performance of Exchange Rate Regimes written by Mr.Kenneth Rogoff and published by International Monetary Fund. This book was released on 2003-12-01 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Some Macroeconomic Issues Under Alternative Exchange Rate Regimes written by Jude Yuen and published by . This book was released on 2003 with total page 153 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in International Macroeconomics written by Hyunju Kang and published by . This book was released on 2012 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Exchange rate regimes and invoicing currency play a crucial role in international macroeconomics due to their importance in the international transmission of monetary policy and the behavior of real exchange rates. In my dissertation, the first essay studies the process of exchange rate regime shifts during sudden stops in a small open economy, using the policy papers by the Bank of Korea to suggest the actual decision-making process within a central bank. The second essay examines the role of invoicing currency in a two-country model with state-dependent pricing(SDP).

Download or read book Essays on Dynamics of Fixed Exchange Rate Regimes and Macroeconomic Fluctuations in Emerging Markets written by Bartosz Adam Maćkowiak and published by . This book was released on 2002 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in the Theory of Exchange Rate Regimes and Macroeconomic Uncertainty written by Umberto Della Mea and published by . This book was released on 1998 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Essays in the Theory of Exchange Rate Regimes and Macroeconomic Uncertainty written by Umberto DellaMea Palumbo and published by . This book was released on 1998 with total page 129 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Does the Exchange Rate Regime Affect Macroeconomic Performance written by Ilker Domaç and published by . This book was released on 2001 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: The exchange rate regime does make a difference for inflation performance. It is difficult to infer its effect on growth, but policy variables, and other variables influencing economic activity, do have different effects on growth under different exchange-rate arrangements.

Download or read book Essays in Macroeconomics written by Andres P. Drenik and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation contains three essays on macroeconomics and optimal redistributive schemes. The first chapter studies two channels through which exchange rate policy affects the real economy. First, if nominal wages do not decrease during a recession, a nominal devaluation of the currency -- as opposed to a fixed exchange rate -- reduces unemployment by lowering wages in real terms. However, if not all wages are equally rigid, sectoral labor markets respond differently under different exchange rate regimes, and redistributive effects arise. Second, nominal devaluations can have an effect on the real value of nominal asset positions. The desirability of a nominal devaluation is analyzed in the context of a quantitative small open economy model. The model features heterogeneous workers and sectoral labor markets that differ in the degree of nominal rigidities. Using data from Argentina, I estimate the model to match aggregate and worker-level moments regarding labor market choices. The model predicts that fixed exchange rate regimes reduce employment and welfare during a recession. A devaluation that does not affect the real value of workers' nominal positions improves the overall well-being of workers, but entails a redistribution of welfare across certain groups of workers. Revaluation effects can be strong enough to overcome the labor market gain of a nominal devaluation. The second chapter is co-authored with Diego Perez. When setting prices firms use idiosyncratic information about the demand for their products as well as public information about the aggregate macroeconomic state. This chapter provides an empirical assessment of the relationship between the availability of public information about inflation and price setting. We exploit an event in which agents lost access to information about the inflation rate: the manipulation of inflation statistics that occurred in Argentina starting in 2007. Our difference-in-difference analysis reveals that this policy had associated an increase in the coefficient of variation of prices of 13% with respect to its mean. This effect is analyzed in the context of a quantitative general equilibrium model in which firms use information about the inflation rate to set prices. Consistent with empirical evidence, we find that monetary policy becomes more effective with less precise information about inflation. Not reporting accurate measures of the CPI entails significant welfare losses, especially in economies with volatile monetary policies. The final chapter is co-authored with Ricardo Perez-Truglia. In it we study the role of fairness concerns in the demand for redistribution through workfare. In the first part of the paper, we present new evidence from a survey experiment. We show that individuals are more generous towards poor people whom they perceive to be diligent workers relative to poor people whom they perceive to be non-diligent, a social preference that we label sympathy for the diligent. This preference is much stronger than preferences regarding other characteristics of the poor, such as race, nationality, and disability. More important, we show that subjects with higher sympathy for the diligent have a stronger preference for workfare programs. In the second part of the paper, we incorporate our empirical findings into a model of income redistribution. We consider the case of a benevolent government with fairness concerns that prioritizes the well-being of individuals who exert the most effort. We characterize the optimal conditions under which the government introduces work requirements. Even if wasteful, work requirements can be optimal, because they allow for a better distinction between individuals who exert great effort and individuals who do not. However, if the government lacks commitment power, the availability of screening through work requirements leads to a lower equilibrium effort and, possibly, a Pareto-dominated allocation.

Download or read book The Transmission of Disturbances Under Alternative Exchange rate Regimes with Optimal Indexing written by Robert Philip Flood and published by . This book was released on 1980 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Transmission of Disturbances Under Alternative Exchange Rate Regimeswith Optimal Indexing written by and published by . This book was released on 1980 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The paper develops a general stochastic macroeconomic model which can be used to study the international transmission of disturbances under alternative exchange-rate systems. Four types of exchange-rate systems are considered: uniform flexible exchange rates, uniform fixed exchange rates, two-tier exchange rates in which the current-account exchange rate is fixed and the capital-account exchange rate is flexible, and two-tier exchange rates with separate, floating rates for current and capital-account transactions. It is assumed that expectations are rational, so only the unexpected portion of macro policy alters the level of output. In addition, private contracts form the underpinning of the aggregate supply function, and they can be adjusted optimally in response to the country's choice of exchange-rate regime. It is shown that when the home country takes all prices as exogenous and wages are optimally indexed, the country is fully insulated from foreign disturbances under the two fixed-rate regimes but not under the two flexible-rate regimes. Even so, the fixed-rate regimes are inferior to the flexible-rate regimes in terms of their ability to minimize output variance. When the home country is large in the market for its own produced good, these results must be modified. The analysis makes two general points. First, one cannot assume stability of structure when assessing the consequences of alternative exchange-rate regimes. For example, the slope of the aggregate supply curve and the rationally-formed expectations in the asset markets can respond dramatically to the government's choice of exchange-rate regime. Second, exchange-rate regimes that provide full insulation from foreign disturbances may nevertheless be inferior to other regimes in terms of their ability to maximize social welfare.

Download or read book Fiscal Policy Under Alternative Exchange Rate Regimes written by Dirk Steffen and published by . This book was released on 2005 with total page 196 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Exchange Rate Regimes in the Modern Era written by Michael W. Klein and published by MIT Press. This book was released on 2012-08-24 with total page 267 pages. Available in PDF, EPUB and Kindle. Book excerpt: An analysis of the operation and consequences of exchange rate regimes in an era of increasing international interdependence. The exchange rate is sometimes called the most important price in a highly globalized world. A country's choice of its exchange rate regime, between government-managed fixed rates and market-determined floating rates has significant implications for monetary policy, trade, and macroeconomic outcomes, and is the subject of both academic and policy debate. In this book, two leading economists examine the operation and consequences of exchange rate regimes in an era of increasing international interdependence. Michael Klein and Jay Shambaugh focus on the evolution of exchange rate regimes in the modern era, the period since 1973, which followed the Bretton Woods era of 1945–72 and the pre-World War I gold standard era. Klein and Shambaugh offer a comprehensive, integrated treatment of the characteristics of exchange rate regimes and their effects. The book draws on and synthesizes data from the recent wave of empirical research on this topic, and includes new findings that challenge preconceived notions.

Download or read book International Policy Coordination Under Alternative Exchange Rate Regimes written by Nouriel Roubini and published by . This book was released on 1988 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Handbook of Development Economics written by Dani Rodrick and published by Elsevier. This book was released on 2009-11-09 with total page 1066 pages. Available in PDF, EPUB and Kindle. Book excerpt: What guidance does academic research really provide to economic policy development? The critical and analytical surveys in this volume investigate links between policies and outcomes by surveying work from broad macroeconomic policies to interventions in microfinance. Asserting that there are no universal correspondences between policies and outcomes, contributors demonstrate instead that only an intense familiarity with the development context and the universe of applicable economic models can generate successful policies. Getting cause-and-effect right is essential for policy design and implementation. With the goal of drawing researchers and policy makers closer, this volume highlights our increasing understanding of ways to combine economic theorizing with careful, thoughtful empirical work. Presents an accurate, self-contained survey of the current state of the field Summarizes the most recent discussions, and elucidates new developments Although original material is also included, the main aim is the provision of comprehensive and accessible surveys